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| Moreno: “Florida’s housing-related contracts will increase by 14%” |
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Noelia Moreno is the first woman leading the Latin Builders Association. She is the owner and vice president of Moralmar Kitchen Cabinets, one of the Top 100 woodworking companies in the United States. The smart and calm Hispanic entrepreneur answered some questions about the future of the construction business in Miami. MDUSA: What is going to be your main focus during your term as head of the Latin Builders Association? NM: My main focus during my term as President is to create opportunities for members to do business with each other and to continue to advocate for the building industry. MDUSA: In a previous conversation, you were very optimistic about this year’s outlook on construction, tell us why? We are beginning to experience new starts in construction. New starts are projected to increase by about 21% from 2009. According to the mortgage bankers, existing home sales are projected to increase about 11.2% and that should help to consume inventory. For 2010, the McGraw-Hill reports predict a 6% overall increase in new contracts, for a total construction figure of about $27.9 billion. Additionally, they have predicted that Florida’s housing-related contracts will increase by 14% this year, resulting in approximately $8.9 billion market for new work. The numbers that have been reported are positive and we will continue to monitor those trends. The factor that is going to negatively affect our recovery is that unemployment still remains high and that over the summer there are a substantial amount of mortgages that are set to adjust. The facts are that housing prices are low and mortgage rates are attractive – qualified buyers should take advantage now. MDUS: In your opinion which are the major challenges for this industry in 2010 and ahead? -Job losses due to housing related job losses (construction, financing, etc.). In this economy many employees would benefit from skills training and should seek out opportunities to learn new skills. -Adjustable rate mortgages are set to re-set between July 2010 and August 2011 nationwide which amounts to approximately $2.5 trillion in loans. We don’t know if that is going to result in another flood of foreclosures. -Personal wealth has been lost (home values down and savings abated). The demand will be for entry level homes. Additionally, many baby boomers will be forced to remain in their homes for a longer period of time in order to try to regain their equity. This will affect demand. -Ability to build at prices consumers can afford. -In the long term, finding available land. -Continuing to attract business to South Florida. MDUSA: The government has promised to invest money in public infrastructure; do you think this will help the sector here in South Florida? MDUSA: When do you expect the sector to come back to previous levels? Adriana Carrera. Miami
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