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UBS director points to jobs as key metric

BY HBSDEALER Staff

Chicago — The difficult task of looking into the future from the vantage point of a Wall Street investor — and sharing that view with home improvement researchers — fell upon Joshua Rosenbaum, of UBS.

And the key to the future, he said, is jobs.

Rosenbaum, managing director of the global industrial group of UBS Investment Bank, was one of seven presenters during the 2013 Home Improvement Research Institute (HIRI) Fall Conference held here. The author of "Investment Banking," and the speaker at previous HIRI events said IPO activity is one of the big stories affecting home improvement this year — among them: Boise Cascade, Ply Gem, HD Supply and Stock Building Supply.

These IPOs are a positive sign for the market. Another good one is shareholder activism. "Shareholder activism is coming back in a big way," Rosenbaum said. "In a bull market, and this is a legitimate bull market, there is a lot more courage to go in and get 5% of a company and agitate for change."

There is no shortage of signs, some of them conflicting, that shed light on the housing industry. But the most important indicator to the health of home and housing, he said, is jobs.

"The Labor market is the key to everything," Rosenbaum said. "As the labor market goes, so goes the housing market."

Historical note: Since the 1950s, annual housing starts have averaged about 1.5 million. So, with annualized housing hovering around a 900,000 pace, Rosenbaum says Wall Street clearly sees a runway for growth, and it also understands that it could be slow growth.

Another big question is cultural: Is it becoming more popular to rent a house, as opposed to buying a house?

Rosenbaum pointed to a chart that showed a 65% home ownership rate, down from a high of 69% in 2004. 

"If we stay where we are today, it’s not a bad thing," he said. "But could it go down to 60%?" Time will tell what is the "right level of homeownership for the U.S," he added.

 

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HCN Stock Watch: Nose dive for SWK

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Stanley Black & Decker (SWK) was down 14.26% on Wednesday, though its third-quarter performance was largely positive.

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AV Homes taps Bill Kiselick as president of new Carolinas Division

BY HBSDEALER Staff

Marking the home builder’s expansion into the Carolinas market, AV Homes has named Bill Kiselick as Carolinas Division president, effective Oct. 7.

Kiselick brings 25 years of North Carolina real estate experiene to the table, having most recently served as division president for Mattamy Homes’ Carolinas Division. His resume also includes stints with MI Homes of Charlotte, Hills Communities of Charlotte and Fortis Homes.

Kiselick is a member of the National Association of Home Builders, the North Carolina Association of Home Builders and the Home Builders Association of Charlotte, where he was president in 2010.

AV Homes recently made its first land purchase in the Bethpage master planned community of Durham, N.C. The active adult community is planned for 1,200 residential and multi-family units, plus a 20-acre retail center and office park. Traditional neighborhoods are also in the works for AV Homes in the Raleigh-Durham and Charlotte regions. Land development is slated to begin in the first quarter of 2014, with sales beginning the following year.

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