Smashing Estate

Recently US-based 84 Lumber company said in a report the national housing market is close to its bottom as in a survey reports they get a decline in sales of $1 billion for 2008. The company is one of the country’s largest home building materials retailers. The company’s overall sales for the year reached $2.1 billion. It is a 50% swing from just a few years ago. That time 84 Lumber’s sales peaked at $4.2 billion in 2004 and 2005. It was the period just before the sub prime mortgage crisis and the major housing crash that followed started to take its toll. 84 spokesman Jeff Nobers said “For our industry, if we’re not at the bottom, the bottom isn’t much below where we’re at.”

In instant reaction to 84 sales went down, the company has closed 85 stores in the last year. It also reduced its human resources by 1500 employees. Company spokesman said the company now operates 319 stores in 35 states, employing only 4500. He added that 84 has been able to boost its market share in the markets.  Doing that, it can continue to operate, as well as is positioning itself to grow once. He hoped the gluts of properties still unsold are bought and homebuilders start to consider extension again. However, amid the economic crises how the homebuilders react to know it we have to wait.