There are several recent developments in the manufactured housing business that signal a turnaround is underway.  Lets look at what's new.

Fleetwood Homes has announced the opening of a new manufacturing facility in Alma, Georgia in August, creating 150 jobs serving increasing consumer demand for Fleetwood Homes in the Southeast.  Can anyone remember the last time a manufacturer in our industry OPENED a new plant?  Wow, even if it's there to build homes primarily for Georgia and Florida, it is good news and proves Fleetwood is optimistic about our future. 

CU Factory Built Lending, the subsidiary of San Antonio Credit Union that has acquired the Federal Way, Washington offices of Chase Manufactured Housing Finance is ramping up quickly.  They hope to be ready to begin accepting applications by the week of July 19th, offering a full array of chattel and land/home loans, including a full portfolio of government sponsored programs.  You can visit their website at www.sacu.com and click on LOANS then MANUFACTURED HOMES.  A new phone number for that office will be publicized shortly, and when we have it we will forward the number to you.  In the meantime, Regional Manager Bill Strunk said today that his 32 person staff is enjoying their off-site orientation to SACU and will be back in the office answering the phones by Thursday.

FoundationWorks, Inc. formerly known as Magnum Foundation Systems, Inc. (dba Advanced Foundation Systems) is off to a terrific start!  Al Preusch, former Chairman and CEO of Guerdon Homes has assembled a very impressive group of professionals to help take this company and it's revolutionary foundation systems nationwide.  Joining Al on the Board of Directors is Bob Linse, Founder of Magnum, General Merrill A. "Tony" McPeak (USAF Retired), formerly Chief of Staff of the US Air Force and member of the Joint Chiefs of Staff and a director of 4 publicly traded companies, and Dr. Dwight Sangrey, Principal and Director of Golder Associates, Inc., bringing 35 years of experience in management, engineering, higher education and public policy to FoundationWorks.  The Council of Advisors includes John Lee, President and Keith Padgett, General Manager of Coach Corral Homes, Mathew Conser, President of Conser Homes, Del Detray and Paul Detray, owners of Detray's Homes, Attorney and industry veteran Mark O'Donnell, George Porter, a national authority on the science of Manufactured Housing installations, Curtis Richards, Director of Marketing and Sales for Palm Harbor Homes, Nicholas St. George, Formerly Chairman and CEO of Oakwood Homes, and yours truly.  Stayed tuned for more news on this amazing product and how it will change the way manufactured homes are installed across the country.  LENDERS:  Get ready....you're going to love financing a home that is installed with a FoundationWorks system!

At Commonwealth, we are seeing many positive signs that indicate an industry rebound.  Not only are vacancies and delinquencies declining, but we have seen several NEW homes move into our communities, which is something we haven't experienced in some time.  While the numbers aren't overwhelming, the sales of pre-owned homes in land lease communities is rising, the number of declared manufactured home repossessions is steadily declining, and interest from consumers in placing new homes is increasing.  All indications are, the second half of 2004 may remain fairly stagnant but 2005 could be a year of noticeable growth in the manufactured housing business. 

Thank you for taking a few moments to read this Industry Update. 

Greg Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101