SOURCE: Rothman Research

Rothman Research

April 20, 2010 13:25 ET

Is Housing-Related Industry Out of the Woods... Yet

JOHANNESBURG, SOUTH AFRICA--(Marketwire - April 20, 2010) -  www.rothmanresearch.com -- The housing sector jumped off the cliff a few years back taking with it all related housing industries and with them the whole American economy. This is now logged as part of the American economic history for future economists to learn. After months of chaos and uncertainties, however, the housing sector seems to be coming out from under the rubbles. And yet it would seem that it is a painful recovery process awaiting the industry. Friday's Residential Housing Data, which is regarded as a crucial measurement of housing, was somewhat positive as it indicated that Housing Starts for March were up 1.6% as compared to February, and also up 20.2% as compared to last year at the same time period. Another key recorded data is the 7.5% surge in building permits which gives an indication about future activities in the industry. The sheer importance of these data can be fully grasped if you consider that these directly influence consumer spending which makes two-thirds of the economic activity pie.

*www.rothmanresearch.com is a source for investors seeking free information on the homebuilding industry; investors are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register.

"Building a home encompasses several layers of expenses that the consumer would have to incur. It is not just the purchase of the housing materials but the purchases of all the other components that turns a house into a home... and these include stuffs like appliances, furnishing, interior and outdoor decors. So when we talk about the housing sector we are not just talking about the home builders but there are the other industries that makes a living through them. When the recession hit and the construction industry went downhill, companies like Masco Corp. (NYSE: MAS) and Louisiana-Pacific Corp. (NYSE: LPX) took it on the chin. For instance, Masco suffered heavy losses as all five of its business segments were reliant on the construction industry and people who were already delinquent on their mortgages would not have been bothered purchasing anything from Masco or any other companies providing any kind of home related products or services," explains Jack Benassi from www.rothmanresearch.com, "Friday's data indicates that if new home are been built it means that companies like Masco will start generating revenue in laymen terms. However, the residential construction data is not reason enough for us to start professing a full blown recovery... It is a still a drop in the bucket, there are still many challenges to tackle; one of these is to get foreclosures at a bearable level."

Visit http://www.rothmanresearch.com/index.php?id=6&name=Register to see how Masco Corp. and Louisiana-Pacific Corp. have performed over the past years.

At this time, the economy is still finding its North and one cannot forecast a quick-fix recovery in the housing sector. There are still daunting issues that need to be addressed, but hope is there as long as consumer starts to spend.

IMPORTANT NOTE: RothmanResearch.com has retracted the release submitted on March 18th, 2010 entitled 'Home Buyers Sector Recovering from Economic Brunt' as some of its content was taken from Morningstar.com as part of a study but was later accidently posted by our editorial team. Our editorial team apologizes for any inconvenience caused to Morningstar.com and all readers.

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