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Housing and Renovation Forecast

on Wed, 03/13/2013 - 06:14

Life is all about Timing. It separates the rich from the poor. The intelligent from the less informed. Here is knowledge that you can’t buy. 

The housing market and the construction industry are just coming up if you look at all the economic indicators. Forget about what is happening in Washington right now with the budget cuts. Most of us do not work in the field that they are cutting and every gray cloud has a silver lining. I started selling real estate when Jimmy Carter was President and interest rates were 20%. Market values of homes hit rock bottom. That is when I bought property and made a fortune from it. Just like today, and construction costs for remodeling, painting & decorating are at all-time lows. We are going on half the amount of estimates and working for half of what we used to get before 2005 (the Crash). I was quoted in the Pioneer Press newspaper a couple of weeks ago saying that the construction market is slow. And that is obvious: People are not buying homes if they are out of work. You have to pay attention to the signs. All of the economic indicators are up now. More jobs, less claims for unemployment, best start for the housing market since pre-2005, and interest rates are at an all-time low. And believe me if you have a project on your home that you need done, in any form of renovation, you will save thousands of dollars by doing it now.

Let me break it down one step further. A couple is trying to purchase a home. All they hear is how bad the market is so they are skeptical of purchasing now. It makes no sense unless you are going to flip the property, which means you buy it at a low price and usually rehab it to flip it in order to make a profit. Otherwise they don’t purchase in the present. So the simple idea is if you are not an Investor just looking to buy and sell, 90% of people that buy homes plan on living in them. So if you plan on living in the property and the average stay of a homeowner is 4–5 years in the current residence, you will realize the market will turn around and you will reap the benefits when it does. That is what home ownership and real estate is all about--speculation. You know in life what goes up must come down and vice versa. Prices have never tumbled in the last five years since the Depression of 1929–1934. Interest rates are at an all-time low. Need I say more? You won’t see prices this low for another 30 years. Just know history always repeats itself. And remember constructions costs are at an all-time low if you are planning on remodeling, renovating or updating.

If you have any questions concerning real estate, construction and any part thereof, don’t hesitate to call the expert, who has dealt with more mortgage companies, title companies, attorneys and judges than any expert in any of these fields that I know.