Not everything in the real estate business is in abundance of supply.
Lay-offs in the manufacturing sector will catch up with our industry as well. It not just about houses and cars, it's about inventory available for renovations, repairs and new construction. Developers have mothballed many projects around the country, and as they wait for the market to turn. Their traditional supplies have had to slow production or close down plants completely...for lack of orders.
The economists and prognosticators I have read have suggested the recovery is a year or two off. That may seam like a long time for the resale market, but for new construction it may mean the need for short supplies, low inventory and a finite amount of warehoused back stock.
If you are waiting for the market to get better to build, do an addition or restart a subdivision you better be prepared to pay higher prices for lumber and material. These manufacturers are some of the companies laying off workers, reducing shifts and ware housing a bare minimum of supply.
As with every economic turn , the smart money gets out early and gets back in before the rest of the conservative players. If you plan to build a home or resart a month balled project now may be the best time to begin. Your finished offering or completed home will be done before your contractor has to pass on the higher materials costs of builders competing for a limited amount of ready supply.
In my opinion this theory goes for land purchases as well, this too is raw material for a building project. Land prices will only go up as resale inventory goes down. The signal for land sellers to raise prices or withdraw the flexible consideration of price and terms, is a factor of supply and demand as well. If you have had your eye on a land purchase your days of great deals are numbered.
Your success in the field of real estate requires you to act ahead of the crowd, and time your purchase correctly. The bottom of the market is visible only when looking a historic data. In other words we know when the recovery happen after it takes place.
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Your White Mountain Real Estate Expert.
Your-White Mountain New Hampshire real Estate Expert
steve@alpinelakes.com toll free 800-926-5653 /cell 603-381-7898
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Timing is everything. That's the hard part, knowing when to get in and when to get out. Getting in early makes a lot of sense, so many just don't have the nerve to do it.
Sharon...there in lies the biggest reward, you are severely penalized if you wait for everyone else to jump in first...the pool gets crowded then.
When money is to be made, everyone jumps in, looking to make a few quick bucks!
I am so glad we built our home in 2005. I was a little reluctant, but my husband pushed and I am glad he did.
Rebecca... I'm sure you would have a hard time finding all the varieties of products you had to choose from if you were building now!
Being closely knitted to your market is the beat way to tell when its time. My market has never been better to buy than now.
Risk and Reward. I am seeing the signs and like you say we won't know it's over until we are well on our way. Who knows for sure but those that take a chance will get the largest rewards.
Laura...good for you keep the deals coming...
Steve, everyone seems to think that they will know when the absolute bottom will hit, but the reality is that by the time you realize what the bottom is it has past you by. We are at or near the bottom right now in my opinion, and those who fail to act now are going to be saying "I wish I had bought back then".
George... I had a sign in my office that read I wish I had bought in 1991...time to update that one to read 2009.