Local contractors say they are feeling the pinch as new home sales continue to slide. According to Bloomberg.com, new home sales fell to its lowest level in 13 years. That number is down 30 percent from February 2007.

Contractors dealing with the slowdown have changed the way they do business. Some did resort to layoffs, but their also dealing with other factors affecting the bottom line.

From cleaning to painting, Marlone Williams is taking any job to fill time and his wallet. A local painter since 1989, Williams says today's market is a sad sight compared to 2005.

“We were making money hand over fist,” said Williams

Williams has laid off 2 employees and is know fudging the bottom line.

“Everyone is complaining there is not enough work now we have to go and lower our prices,” said Williams.

Electricians are also feeling the shock. Thomas Gotbeter, of Gotbeter Electric, has seen better days. With the lack of new home construction gigs, he's turned to small commercial work and renovations.

“One of my contractors told me I had to come down on my prices or he wouldn't use me because he found someone cheaper,” said Gotbeter.

Charging less but Gotbeter is paying more for materials. Copper prices are on the rise and another unexpected cost for Gotbeter.

“If gas goes up ten cents, wire goes up ten cents basically,” said Gotbeter.

Businesses offering multiple services seem to be handling the housing crunch better than some of the smaller companies we spoke with who specialize in one trade. Some good news on the housing front, inventory dropped to 471 thousand nationwide, the fewest since July 2005.

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