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6 Reasons Why Now Might be the Best Time
Ever to Bu ild a New Home By Scott Stroud www.BuilderRadio.com I should have bought stock in Google when it was first released. I knew it then, but
I didn’t act. I was scared off by the nay -sayers in the media. I hesitated, and the ground -sayers in the media.
I hesitated, and the groundfloor opportunity didn’t wait. Today,
Google’s stock is up 800% from its initial price. Today, the opportunity to build a new home is similar
to Google’s initial stock offering – an excellent investment
and a short window of o pportunity. What… housing? A good investment?
Is this a joke? It’s no secret that the housing industry has been in a downward spiral for the past
t hreeyears. Housing prices have fallen in most markets – some up to 40% or more from their2005 values. Banks and
mortgage companies that extended themselves with bad loans and unrealistic lending programs have restricted
their credit standards, gotten out of the mortgage arena, or gone out of business. And, builders and contractors
who were too busy to return phone calls are now looking for work, and grateful if they get it. hreeyears. Housing prices have fallen in most markets –
some up to 40% or more from their2005 values. Banks and mortgage companies
that extended themselves with bad loans and unrealistic lending programs have restricted their credit standards,
gotten out of the mortgage arena, or gone out of business. And, builders and contractors who were too busy to return phone calls are now looking for work, and grateful if they get it. – some up to 40% or more from their2005 values.
Banks and mortgage companies that extended themselves with bad loans and unrealistic lending programs have
restricted their credit standards, gotten out of the mortgage arena, or gone out of business. And, builders
and contractors who were too busy to return phone calls are now looking for work, and grateful if they
get it. It’s scary, we know. But, these very same factors make
now an excellent time for thosethat
can do so to act on building their dream home. Here are six solid reasons why those who take action now
will save thousands on the construction of their new home, and what to do to take advantage of these favorable
– that’s right, favorable – market conditions. now an excellent time for thosethat can do
so to act on building their dream home. Here are six solid reasons why those who take action now will save
thousands on the construction of their new home, and what to do to take advantage of these favorable – that’s right, favorable – market conditions. –
that’s right, favorable – market conditions.1. Housing is cyclical. The period from 1987 – 2005 was one of the strongest ho using booms since WWII. By2004, it became obvious to many that
housing starts were growing at unsustainable – 2005 was one of the strongest ho using booms since WWII. By2004, it became obvious to many that
housing starts were growing at unsustainable levels. Land, materials,
and home prices were escalating and the term ‘housing bubble’ was
coined to describe the frightening pace at which new h omes were being built. Like all bubbles, everyone knew it couldn’t last forever, but the economy had become so dependent upon the housing sector that it was hard to ease it back gradually. The ‘pop’ ‘pop’came in late 2005, and by 2006 huge inventories began t o erode builder profits and housing
values began to fall. Just like 20 years before. Historically, housing
‘booms’ last 8 – 12 years. This one lasted 18 years. But, thesecycles
typically run ‘hot’ for about 10 years, then ‘cool’ for 3 – 4 years. Then, the cyclestarts again. Today, two full years into the ‘cooling off’
period , new home inventories are beginningto be absorbed and markets
are starting to stabilize. Projections are that by the middle of 2009, the market will start heating up
again as a new up-cycle begins. That growth, just like that of past upturns, will mean a reinvigoration
of the market… and rising costs to gowith
it.2. Interest rates are at historic lows. 2. Interest rates are at historic lows. As this is being written,
30-year fixed rates are near 6% and 15 -year rates are well below that number. Other than a brief few months
in 2004, those are the lowest rates in the past 40 years. True, credit is tighter than it was two years
ago, but that only affects those with marginal credit. The vast majority of home buy ers will not be impacted
by more stringent lending standards. Low mortgage rates, combined with the lowest material and land costs we’re ever likely to see, mean that right now you can build more house
for the money than you will when the housing market r ecovers. Substantially more! Substantially more!3.
Materials costs are rising, and will continue to do so. Higher
fuel costs are being applied to building materials, as they are to just about everything. However, many
building materials are very energy -intensive to produce, and so might be more impacted than most consumer
goods. The largest cost in producing drywall, for example, is the energy to fire the kilns to dry it. Do
you see energy costs going down in the near future? Neither do I. 4. Builders, Contractors and Tradesmen are available…for now. …for now.When housing is strong
(and it will be again , soon) there is a waiting list for contractors. At the height of the housing boom,
one of the most discussed topics at builder meetings was the fact that fewer people were en tering the
trades and builders were having difficulties hiring enough experienced people to form full crews. Today,
there is a ‘window of opportunity.’ When crews are available
without long waits, homes are built and finished in less time, requiring
less interest on construction loans. This favorable situation is temporary –
cyclical, remember? – cyclical, remember?5. Land is available…while
it lasts. In boom times, bigger builders and developers monopolize
the best lots, driving up costs and leaving scattered-site builders and home buyers to fight over their
leftovers. Now, the large-volume builders are bogged down with excess inventories (homes they built and have all their cash tied up in,) and many aren’t liquid enough to make land investments. That means that land prices are about as low as they will be, and the choice and availability are at their best. 6. Housing demand
will soon outstrip existing inventory, and is on the rise. This
might be the biggest incentive to act now to build. New families are being forme d in the U.S. at a record
pace – far faster than new homes are being built to
accommodatethem. It seems nobody is looking ahead. By the end of this decade it is projected that there
will be a need for nearly 2 million new homes per
year to handle the po pulationgrowth in this country. The housing industry has never produced homes at that
rate, and with the labor issues that were felt during the past housing boom, it is questionable whether
those quotas can be filled. – far faster than new homes are being built to accommodatethem. It seems nobody is looking ahead.
By the end of this decade it is projected that there will be a need for nearly 2 million new homes per year to handle the po pulationgrowth
in this country. The housing industry has never produced homes at that rate, and with the labor issues
that were felt during the past housing boom, it is questionable whether those quotas can be filled. 2 million new homes per year to handle the po pulationgrowth
in this country. The housing industry has never produced homes at that rate, and with the labor issues
that were felt during the past housing boom, it is questionable whether those quotas can be filled. Today, we’re on the brink of the next big housing
boom. When it happens (and no one issure exactly when it will happen, just that it will) the door will close
on individuals whoare waiting for the media to give them the ‘all clear.’
Housing costs will continue to rise, are waiting for the media to give them the ‘all clear.’
Housing costs will continue to rise, labor shortages will create long delays,
interest rates will rise to try to control inflation, and homes will become less and less affordable. What all this means is that buyers who sell their homes today might get 8% - 10% less than
they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from
those same levels (but already climbing.) Sure, when the market recovers existing
homes will regain their previous value, but they won’t keep up xisting
homes will regain their previous value, but they won’t keep upwith
the rising costs of new constructi on. This brings me to a seventh (bonus) reason why now is undoubtedly
a great time to act to build your new home: The sooner you build it,
the longer you’ll enjoy it. The points discussed here are common
knowledge and common sense. No, there are no guarantees that the market will recover on schedule , or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan
that housing is historically cyclical, that families are forming faster than houses are . We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’
may be something our children only read about. And that, if you want
to realize your dream of owning a beautiful new home, there will never be a better time to act on that
dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. next big housing boom. When it happens (and no one issure exactly when it will happen, just that it will) the door will close on individuals whoare waiting for the media to give them the ‘all clear.’ Housing costs will continue
to rise, are waiting for the media to give them the ‘all clear.’ Housing costs will
continue to rise, labor shortages will create long delays, interest rates
will rise to try to control inflation, and homes will become less and less affordable. What
all this means is that buyers who sell their homes today might get 8% - 10% less than they would have gotten
back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but
already climbing.) Sure, when the market recovers existing homes will regain
their previous value, but they won’t keep up xisting homes will regain
their previous value, but they won’t keep upwith the rising costs
of new constructi on. This brings me to a seventh (bonus) reason why now is undoubtedly a great time to
act to build your new home: The sooner you build it, the longer you’ll
enjoy it. The points discussed here are common knowledge and common
sense. No, there are no guarantees that the market will recover on schedule , or
that some unforeseen event won’tcause a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan
that housing is historically cyclical, that families are forming faster than houses are . We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’
may be something our children only read about. And that, if you want
to realize your dream of owning a beautiful new home, there will never be a better time to act on that
dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. 12 years. This
one lasted 18 years. But, thesecycles typically run ‘hot’ for about 10 years, then ‘cool’ for 3 – 4 years. Then, the cyclestarts again. Today, two full years into the ‘cooling off’ period , new home inventories
are beginningto be absorbed and markets are starting to stabilize. Projections are that by the middle of 2009, the market will start heating up again as a new up-cycle begins. That growth, just like
that of past upturns, will mean a reinvigoration of the market… and rising costs to gowith it.2. Interest
rates are at historic lows. 2. Interest rates are at historic lows. As this is being written, 30-year fixed rates are near 6% and 15 -year rates are well below that number. Other than a brief few months in 2004, those are the lowest rates in the past 40
years. True, credit is tighter than it was two years ago, but that only affects those with marginal credit.
The vast majority of home buy ers will not be impacted by more stringent lending standards. Low mortgage
rates, combined with the lowest material and land costs we’re
ever likely to see, mean that right now you can build more house for the money
than you will when the housing market r ecovers. Substantially more! Substantially more!3. Materials costs are rising, and will continue to do so. Higher fuel costs are being applied to building materials, as they are to just about everything. However, many building materials are very energy -intensive to produce, and so
might be more impacted than most consumer goods. The largest cost in producing drywall, for example, is
the energy to fire the kilns to dry it. Do you see energy costs going down in the near future? Neither
do I. 4. Builders, Contractors and Tradesmen are available…for now. …for now.When housing is strong (and it will be again , soon) there is a waiting list for contractors. At the height of the housing boom, one of the most discussed topics at builder meetings was
the fact that fewer people were en tering the trades and builders were having difficulties hiring enough
experienced people to form full crews. Today, there is a ‘window
of opportunity.’ When crews are available without long waits, homes are built and finished in less time, requiring less interest on construction loans. This favorable situation
is temporary – cyclical, remember? – cyclical, remember?5. Land is available…while it lasts. In
boom times, bigger builders and developers monopolize the best lots, driving up costs and leaving scattered-site
builders and home buyers to fight over their leftovers. Now, the large-volume builders are bogged down
with excess inventories (homes they built and have all their cash tied
up in,) and many aren’t liquid enough to make land investments. That
means that land prices are about as low as they will be, and the choice and availability are at their best. 6. Housing demand will soon outstrip existing inventory, and is on the rise. This might be the biggest incentive to act now to build. New families are being forme
d in the U.S. at a record pace – far
faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of
this decade it is projected that there will be a need for nearly 2 million
new homes per year to handle the po pulationgrowth in this country.
The housing industry has never produced homes at that rate, and with the labor issues that were felt during
the past housing boom, it is questionable whether those quotas can be filled. – far faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of this decade it is projected that there
will be a need for nearly 2 million new homes per
year to handle the po pulationgrowth in this country. The housing industry has never produced homes at that
rate, and with the labor issues that were felt during the past housing boom, it is questionable whether
those quotas can be filled. 2 million new homes per year to handle the po pulationgrowth in this country. The housing industry has never
produced homes at that rate, and with the labor issues that were felt during the past housing boom, it
is questionable whether those quotas can be filled. Today,
we’re on the brink of the next big housing boom. When it happens (and no one issure
exactly when it will happen, just that it will) the door will close on individuals whoare
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, are
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and homes will become less and less affordable. What all this means is that buyers who sell
their homes today might get 8% - 10% less than they would have gotten back in 2005, but the cost of new
construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when
the market recovers existing homes will regain their previous value, but they
won’t keep up xisting homes will regain their previous value, but they
won’t keep upwith the rising costs of new constructi on. This
brings me to a seventh (bonus) reason why now is undoubtedly a great time to act to build your new home: The sooner you build it, the longer you’ll enjoy it. The points discussed here are common knowledge and common sense. No, there are no guarantees
that the market will recover on schedule , or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are or that some unforeseen event won’tcause a recession next year, or that there won’t be an other energy crisis,
terrorist attack,floods in the Midwest or more hurricanes. We don’t know
what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are other energy
crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t
know what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are . We don’t know what
the future holds, otherthan that housing is historically cyclical, that
families are forming faster than houses are being built, that energy
costs will never go back down, and that the term ‘affordable housing’ may be something our
children only read about. And that, if you want to realize your dream
of owning a beautiful new home, there will never be a better time to act on that dream than right now. About the Author: Scott
Stroud has been involved in new home construction and sales since 1974, when he started framing houses
in his home town of Louisville, KY. He grew a profitable new home sales company during the housing -bust of the early 1980’s, and has since help bust
of the early 1980’s, and has since helpexecutive sales and marketing
positions with national home producers. Today, Scott works as a business consultant for J. Rouleau &
Associates, LLC, and can be heard weekly as co-host of the Internet radio program Selling New Homes: The MondayMorning Sales Meeting. He and his wife,
Melanie, currently live in Somerset, KY. Selling New Homes:
The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in
Somerset, KY. He and his wife, Melanie, currently live in Somerset, KY. next big housing boom. When it happens (and no one issure exactly when it will happen,
just that it will) the door will close on individuals whoare waiting for the
media to give them the ‘all clear.’ Housing costs will continue to rise, are waiting
for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and
homes will become less and less affordable. What all this means is that buyers who sell their homes today
might get 8% - 10% less than they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when the market recovers
existing homes will regain their previous value, but they won’t keep up xisting homes will regain their previous value, but they won’t keep upwith the rising costs of new constructi on. This brings me to a seventh (bonus)
reason why now is undoubtedly a great time to act to build your new
home: The sooner you build it, the longer you’ll enjoy it. The
points discussed here are common knowledge and common sense. No, there are no guarantees that the market
will recover on schedule , or that some unforeseen event won’tcause a recession
next year, or that there won’t be an other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are . We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’ may be something our children only read about. And
that, if you want to realize your dream of owning a beautiful new home, there will never be a better time
to act on that dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. ‘hot’ for about 10 years, then ‘cool’ for 3 – 4 years. Then, the cyclestarts again. Today, two full years into the ‘cooling off’ period , new home inventories
are beginningto be absorbed and markets are starting to stabilize. Projections are that by the middle of 2009, the market will start heating up again as a new up-cycle begins. That growth, just like
that of past upturns, will mean a reinvigoration of the market… and rising costs to gowith it.2. Interest
rates are at historic lows. 2. Interest rates are at historic lows. As this is being written, 30-year fixed rates are near 6% and 15 -year rates are well below that number. Other than a brief few months in 2004, those are the lowest rates in the past 40
years. True, credit is tighter than it was two years ago, but that only affects those with marginal credit.
The vast majority of home buy ers will not be impacted by more stringent lending standards. Low mortgage
rates, combined with the lowest material and land costs we’re
ever likely to see, mean that right now you can build more house for the money
than you will when the housing market r ecovers. Substantially more! Substantially more!3. Materials costs are rising, and will continue to do so. Higher fuel costs are being applied to building materials, as they are to just about everything. However, many building materials are very energy -intensive to produce, and so
might be more impacted than most consumer goods. The largest cost in producing drywall, for example, is
the energy to fire the kilns to dry it. Do you see energy costs going down in the near future? Neither
do I. 4. Builders, Contractors and Tradesmen are available…for now. …for now.When housing is strong (and it will be again , soon) there is a waiting list for contractors. At the height of the housing boom, one of the most discussed topics at builder meetings was
the fact that fewer people were en tering the trades and builders were having difficulties hiring enough
experienced people to form full crews. Today, there is a ‘window
of opportunity.’ When crews are available without long waits, homes are built and finished in less time, requiring less interest on construction loans. This favorable situation
is temporary – cyclical, remember? – cyclical, remember?5. Land is available…while it lasts. In
boom times, bigger builders and developers monopolize the best lots, driving up costs and leaving scattered-site
builders and home buyers to fight over their leftovers. Now, the large-volume builders are bogged down
with excess inventories (homes they built and have all their cash tied
up in,) and many aren’t liquid enough to make land investments. That
means that land prices are about as low as they will be, and the choice and availability are at their best. 6. Housing demand will soon outstrip existing inventory, and is on the rise. This might be the biggest incentive to act now to build. New families are being forme
d in the U.S. at a record pace – far
faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of
this decade it is projected that there will be a need for nearly 2 million
new homes per year to handle the po pulationgrowth in this country.
The housing industry has never produced homes at that rate, and with the labor issues that were felt during
the past housing boom, it is questionable whether those quotas can be filled. – far faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of this decade it is projected that there
will be a need for nearly 2 million new homes per
year to handle the po pulationgrowth in this country. The housing industry has never produced homes at that
rate, and with the labor issues that were felt during the past housing boom, it is questionable whether
those quotas can be filled. 2 million new homes per year to handle the po pulationgrowth in this country. The housing industry has never
produced homes at that rate, and with the labor issues that were felt during the past housing boom, it
is questionable whether those quotas can be filled. Today,
we’re on the brink of the next big housing boom. When it happens (and no one issure
exactly when it will happen, just that it will) the door will close on individuals whoare
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, are
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and homes will become less and less affordable. What all this means is that buyers who sell
their homes today might get 8% - 10% less than they would have gotten back in 2005, but the cost of new
construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when
the market recovers existing homes will regain their previous value, but they
won’t keep up xisting homes will regain their previous value, but they
won’t keep upwith the rising costs of new constructi on. This
brings me to a seventh (bonus) reason why now is undoubtedly a great time to act to build your new home: The sooner you build it, the longer you’ll enjoy it. The points discussed here are common knowledge and common sense. No, there are no guarantees
that the market will recover on schedule , or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are or that some unforeseen event won’tcause a recession next year, or that there won’t be an other energy crisis,
terrorist attack,floods in the Midwest or more hurricanes. We don’t know
what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are other energy
crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t
know what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are . We don’t know what
the future holds, otherthan that housing is historically cyclical, that
families are forming faster than houses are being built, that energy
costs will never go back down, and that the term ‘affordable housing’ may be something our
children only read about. And that, if you want to realize your dream
of owning a beautiful new home, there will never be a better time to act on that dream than right now. About the Author: Scott
Stroud has been involved in new home construction and sales since 1974, when he started framing houses
in his home town of Louisville, KY. He grew a profitable new home sales company during the housing -bust of the early 1980’s, and has since help bust
of the early 1980’s, and has since helpexecutive sales and marketing
positions with national home producers. Today, Scott works as a business consultant for J. Rouleau &
Associates, LLC, and can be heard weekly as co-host of the Internet radio program Selling New Homes: The MondayMorning Sales Meeting. He and his wife,
Melanie, currently live in Somerset, KY. Selling New Homes:
The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in
Somerset, KY. He and his wife, Melanie, currently live in Somerset, KY. next big housing boom. When it happens (and no one issure exactly when it will happen,
just that it will) the door will close on individuals whoare waiting for the
media to give them the ‘all clear.’ Housing costs will continue to rise, are waiting
for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and
homes will become less and less affordable. What all this means is that buyers who sell their homes today
might get 8% - 10% less than they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when the market recovers
existing homes will regain their previous value, but they won’t keep up xisting homes will regain their previous value, but they won’t keep upwith the rising costs of new constructi on. This brings me to a seventh (bonus)
reason why now is undoubtedly a great time to act to build your new
home: The sooner you build it, the longer you’ll enjoy it. The
points discussed here are common knowledge and common sense. No, there are no guarantees that the market
will recover on schedule , or that some unforeseen event won’tcause a recession
next year, or that there won’t be an other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are . We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’ may be something our children only read about. And
that, if you want to realize your dream of owning a beautiful new home, there will never be a better time
to act on that dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. full years into the ‘cooling
off’ period , new home inventories are beginningto be absorbed and
markets are starting to stabilize. Projections are that by the middle of 2009, the market will start heating
up again as a new up-cycle begins. That growth, just like that of past upturns, will mean a reinvigoration
of the market… and rising costs to gowith
it.2. Interest rates are at historic lows. 2. Interest rates are at historic lows. As this is being written,
30-year fixed rates are near 6% and 15 -year rates are well below that number. Other than a brief few months
in 2004, those are the lowest rates in the past 40 years. True, credit is tighter than it was two years
ago, but that only affects those with marginal credit. The vast majority of home buy ers will not be impacted
by more stringent lending standards. Low mortgage rates, combined with the lowest material and land costs we’re ever likely to see, mean that right now you can build more house
for the money than you will when the housing market r ecovers. Substantially more! Substantially more!3.
Materials costs are rising, and will continue to do so. Higher
fuel costs are being applied to building materials, as they are to just about everything. However, many
building materials are very energy -intensive to produce, and so might be more impacted than most consumer
goods. The largest cost in producing drywall, for example, is the energy to fire the kilns to dry it. Do
you see energy costs going down in the near future? Neither do I. 4. Builders, Contractors and Tradesmen are available…for now. …for now.When housing is strong
(and it will be again , soon) there is a waiting list for contractors. At the height of the housing boom,
one of the most discussed topics at builder meetings was the fact that fewer people were en tering the
trades and builders were having difficulties hiring enough experienced people to form full crews. Today,
there is a ‘window of opportunity.’ When crews are available
without long waits, homes are built and finished in less time, requiring
less interest on construction loans. This favorable situation is temporary –
cyclical, remember? – cyclical, remember?5. Land is available…while
it lasts. In boom times, bigger builders and developers monopolize
the best lots, driving up costs and leaving scattered-site builders and home buyers to fight over their
leftovers. Now, the large-volume builders are bogged down with excess inventories (homes they built and have all their cash tied up in,) and many aren’t liquid enough to make land investments. That means that land prices are about as low as they will be, and the choice and availability are at their best. 6. Housing demand
will soon outstrip existing inventory, and is on the rise. This
might be the biggest incentive to act now to build. New families are being forme d in the U.S. at a record
pace – far faster than new homes are being built to
accommodatethem. It seems nobody is looking ahead. By the end of this decade it is projected that there
will be a need for nearly 2 million new homes per
year to handle the po pulationgrowth in this country. The housing industry has never produced homes at that
rate, and with the labor issues that were felt during the past housing boom, it is questionable whether
those quotas can be filled. – far faster than new homes are being built to accommodatethem. It seems nobody is looking ahead.
By the end of this decade it is projected that there will be a need for nearly 2 million new homes per year to handle the po pulationgrowth
in this country. The housing industry has never produced homes at that rate, and with the labor issues
that were felt during the past housing boom, it is questionable whether those quotas can be filled. 2 million new homes per year to handle the po pulationgrowth
in this country. The housing industry has never produced homes at that rate, and with the labor issues
that were felt during the past housing boom, it is questionable whether those quotas can be filled. Today, we’re on the brink of the next big housing
boom. When it happens (and no one issure exactly when it will happen, just that it will) the door will close
on individuals whoare waiting for the media to give them the ‘all clear.’
Housing costs will continue to rise, are waiting for the media to give them the ‘all clear.’
Housing costs will continue to rise, labor shortages will create long delays,
interest rates will rise to try to control inflation, and homes will become less and less affordable. What all this means is that buyers who sell their homes today might get 8% - 10% less than
they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from
those same levels (but already climbing.) Sure, when the market recovers existing
homes will regain their previous value, but they won’t keep up xisting
homes will regain their previous value, but they won’t keep upwith
the rising costs of new constructi on. This brings me to a seventh (bonus) reason why now is undoubtedly
a great time to act to build your new home: The sooner you build it,
the longer you’ll enjoy it. The points discussed here are common
knowledge and common sense. No, there are no guarantees that the market will recover on schedule , or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan
that housing is historically cyclical, that families are forming faster than houses are . We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’
may be something our children only read about. And that, if you want
to realize your dream of owning a beautiful new home, there will never be a better time to act on that
dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. next big housing boom. When it happens (and no one issure exactly when it will happen, just that it will) the door will close on individuals whoare waiting for the media to give them the ‘all clear.’ Housing costs will continue
to rise, are waiting for the media to give them the ‘all clear.’ Housing costs will
continue to rise, labor shortages will create long delays, interest rates
will rise to try to control inflation, and homes will become less and less affordable. What
all this means is that buyers who sell their homes today might get 8% - 10% less than they would have gotten
back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but
already climbing.) Sure, when the market recovers existing homes will regain
their previous value, but they won’t keep up xisting homes will regain
their previous value, but they won’t keep upwith the rising costs
of new constructi on. This brings me to a seventh (bonus) reason why now is undoubtedly a great time to
act to build your new home: The sooner you build it, the longer you’ll
enjoy it. The points discussed here are common knowledge and common
sense. No, there are no guarantees that the market will recover on schedule , or
that some unforeseen event won’tcause a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are or that some unforeseen event won’tcause a recession next year, or that there
won’t be an other energy crisis, terrorist attack,floods in the Midwest
or more hurricanes. We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan
that housing is historically cyclical, that families are forming faster than houses are . We don’t know what the future holds, otherthan that
housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’
may be something our children only read about. And that, if you want
to realize your dream of owning a beautiful new home, there will never be a better time to act on that
dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
in Somerset, KY. … and
rising costs to gowith it.2. Interest rates are at historic
lows. 2. Interest rates are at historic lows. As
this is being written, 30-year fixed rates are near 6% and 15 -year rates are well below that number. Other
than a brief few months in 2004, those are the lowest rates in the past 40 years. True, credit is tighter
than it was two years ago, but that only affects those with marginal credit. The vast majority of home
buy ers will not be impacted by more stringent lending standards. Low mortgage rates, combined with the
lowest material and land costs we’re ever likely to see, mean
that right now you can build more house for the money than you will
when the housing market r ecovers. Substantially more! Substantially more!3. Materials costs are rising, and will continue to do so. Higher fuel costs are being applied to building materials, as they are to just about everything.
However, many building materials are very energy -intensive to produce, and so might be more impacted than
most consumer goods. The largest cost in producing drywall, for example, is the energy to fire the kilns
to dry it. Do you see energy costs going down in the near future? Neither do I. 4. Builders, Contractors and Tradesmen are available…for
now. …for now.When
housing is strong (and it will be again , soon) there is a waiting list for contractors. At the height
of the housing boom, one of the most discussed topics at builder meetings was the fact that fewer people
were en tering the trades and builders were having difficulties hiring enough experienced people to form
full crews. Today, there is a ‘window of opportunity.’
When crews are available without long waits, homes are built and finished
in less time, requiring less interest on construction loans. This favorable situation is temporary – cyclical, remember? – cyclical, remember?5.
Land is available…while it lasts. In boom times, bigger
builders and developers monopolize the best lots, driving up costs and leaving scattered-site builders
and home buyers to fight over their leftovers. Now, the large-volume builders are bogged down with excess
inventories (homes they built and have all their cash tied up in,)
and many aren’t liquid enough to make land investments. That
means that land prices are about as low as they will be, and the choice and availability are at their best. 6. Housing demand will soon outstrip existing inventory, and is on the rise. This might be the biggest incentive to act now to build. New families are being forme
d in the U.S. at a record pace – far
faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of
this decade it is projected that there will be a need for nearly 2 million
new homes per year to handle the po pulationgrowth in this country.
The housing industry has never produced homes at that rate, and with the labor issues that were felt during
the past housing boom, it is questionable whether those quotas can be filled. – far faster than new homes are being built to accommodatethem. It seems nobody is looking ahead. By the end of this decade it is projected that there
will be a need for nearly 2 million new homes per
year to handle the po pulationgrowth in this country. The housing industry has never produced homes at that
rate, and with the labor issues that were felt during the past housing boom, it is questionable whether
those quotas can be filled. 2 million new homes per year to handle the po pulationgrowth in this country. The housing industry has never
produced homes at that rate, and with the labor issues that were felt during the past housing boom, it
is questionable whether those quotas can be filled. Today,
we’re on the brink of the next big housing boom. When it happens (and no one issure
exactly when it will happen, just that it will) the door will close on individuals whoare
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, are
waiting for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and homes will become less and less affordable. What all this means is that buyers who sell
their homes today might get 8% - 10% less than they would have gotten back in 2005, but the cost of new
construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when
the market recovers existing homes will regain their previous value, but they
won’t keep up xisting homes will regain their previous value, but they
won’t keep upwith the rising costs of new constructi on. This
brings me to a seventh (bonus) reason why now is undoubtedly a great time to act to build your new home: The sooner you build it, the longer you’ll enjoy it. The points discussed here are common knowledge and common sense. No, there are no guarantees
that the market will recover on schedule , or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are or that some unforeseen event won’tcause a recession next year, or that there won’t be an other energy crisis,
terrorist attack,floods in the Midwest or more hurricanes. We don’t know
what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are other energy
crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t
know what the future holds, otherthan that housing is historically cyclical,
that families are forming faster than houses are . We don’t know what
the future holds, otherthan that housing is historically cyclical, that
families are forming faster than houses are being built, that energy
costs will never go back down, and that the term ‘affordable housing’ may be something our
children only read about. And that, if you want to realize your dream
of owning a beautiful new home, there will never be a better time to act on that dream than right now. About the Author: Scott
Stroud has been involved in new home construction and sales since 1974, when he started framing houses
in his home town of Louisville, KY. He grew a profitable new home sales company during the housing -bust of the early 1980’s, and has since help bust
of the early 1980’s, and has since helpexecutive sales and marketing
positions with national home producers. Today, Scott works as a business consultant for J. Rouleau &
Associates, LLC, and can be heard weekly as co-host of the Internet radio program Selling New Homes: The MondayMorning Sales Meeting. He and his wife,
Melanie, currently live in Somerset, KY. Selling New Homes:
The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in
Somerset, KY. He and his wife, Melanie, currently live in Somerset, KY. next big housing boom. When it happens (and no one issure exactly when it will happen,
just that it will) the door will close on individuals whoare waiting for the
media to give them the ‘all clear.’ Housing costs will continue to rise, are waiting
for the media to give them the ‘all clear.’ Housing costs will continue to rise, labor shortages will create long delays, interest rates will rise to try to control inflation, and
homes will become less and less affordable. What all this means is that buyers who sell their homes today
might get 8% - 10% less than they would have gotten back in 2005, but the cost of new construction is currently down by nearly 20% from those same levels (but already climbing.) Sure, when the market recovers
existing homes will regain their previous value, but they won’t keep up xisting homes will regain their previous value, but they won’t keep upwith the rising costs of new constructi on. This brings me to a seventh (bonus)
reason why now is undoubtedly a great time to act to build your new
home: The sooner you build it, the longer you’ll enjoy it. The
points discussed here are common knowledge and common sense. No, there are no guarantees that the market
will recover on schedule , or that some unforeseen event won’tcause a recession
next year, or that there won’t be an other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are or that some unforeseen event won’tcause
a recession next year, or that there won’t be an other energy crisis, terrorist attack,floods in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster
than houses are other energy crisis, terrorist attack,floods
in the Midwest or more hurricanes. We don’t know what the future holds, otherthan that housing is historically cyclical, that families are forming faster than houses
are . We don’t know what the future holds,
otherthan that housing is historically cyclical, that families are forming faster than houses are being built, that energy costs will never go back down, and that the term ‘affordable housing’ may be something our children only read about. And
that, if you want to realize your dream of owning a beautiful new home, there will never be a better time
to act on that dream than right now. About the Author: Scott Stroud has been involved in new home construction and sales since 1974, when
he started framing houses in his home town of Louisville, KY. He grew a profitable new home
sales company during the housing -bust of the early 1980’s, and has since help bust of the early 1980’s, and has since helpexecutive
sales and marketing positions with national home producers. Today, Scott works as a business consultant
for J. Rouleau & Associates, LLC, and can be heard weekly as co-host of the Internet radio program
Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie, currently live in Somerset, KY. Selling New Homes: The MondayMorning Sales Meeting. He and his wife, Melanie,
currently live in Somerset, KY. He and his wife, Melanie, currently live
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