3 Great Reasons Why 2008 May Be The Best Time
For Milwaukee Consumers To Build A Home!
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By Bill Stanfield, President, New Home Planners
Recently, we’ve all faced a barrage of disturbing reports depicting collapsing mortgage markets,
slow downs in the real estate markets, and political discontent on a global scale. And, for better
or worse, the extent and duration of negative media can adversely influence our sense of well
being and subsequent buying habits. It’s why statisticians, investors, and commerce place so
much emphasis on the consumer confidence index. As consumers, we simply tend to buy more
when we feel happy and secure and withdraw from spending activities when we don’t. It’s an
understandable emotional reaction…but not, necessarily, a logical one.
Everybody loves a bargain but have you noticed that they always seem to be in short supply
when you want or need them the most? It’s not really all that complicated. Astute consumers
will tell you that your best bargains are more a function of timing, not availability. For example,
the cost of seasonal wrapping paper and greeting cards is always less right after the holidays
rather than before them.
That said; I’ll give you 3 great “timing” reasons to consider building a new home in 2008:
1. The COST to build a home has decreased significantly.
The cost of construction labor is at its most favorable level. With less work available, subcontractors
have adapted to the changing market conditions with more competitive and less costly pricing.
Further, the basic economics of supply and demand have cycled through now and work to the smart
consumer’s advantage when it comes to materials. With less domestic construction activity and increased
foreign demand for raw materials, the supply and “overall” cost of construction materials is, also,
at its most favorable level. While fluctuations can be anticipated, overall material costs are more
likely to escalate than decline in the future…all the more reason to move expeditiously.
2. Lenders are offering better incentives and NEED your business.
With the tightening of lending standards, mortgage lenders are aggressively competing for
Customers with documentable income and acceptable credit quality using fee waivers and
attractively affordable interest rates. That doesn’t, necessarily, mean “perfect” credit but rather,
“responsible” use of credit. And, if rates happen to decline in the future, you can always
consider refinancing.
3. Choice home sites are available and are poised for dramatic increases in the future.
Most developers abstain from new development when demand is low. Since new subdivisions,
generally, require 2-3 years to develop, a future shortage in the supply of developed land is
imminent which, typically, accelerates available land prices as the economy improves.
In spite of what many may, temporarily, think, our economy remains a self adjusting and resilient
creature that changes constantly with no shortage of opportunities. It’s merely a matter of timing
and working smart. |
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