Real Estate Information |
|
How Does Interest Rates Affect New Home Sales and Wheres The Best Place To Build?
These real questions on new home starts and interest rates on real estate are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy." Question 1. What is the your forecast for home starts in the US for the next 12 months? 24 months? Master Builder & Developer's Reply: This depends upon where you are. New home starts are excellent for Florida, Texas, and Arizona. What most people don't appreciate is that there is always growth in new homes. Cities grow in spurts, but there is also controlled growth. As one part of an area dies from old age it is revitalized and redeveloped. So remember national growth statistics on new home starts are not much use to you unless you have a national business. The best advice we can give you is to "read" market data - census data etc. Personally I have kept average residential dollar sales figures on homes for my City since 1974. At first it might appear to be a lot of work, but after you have your base, say 20 years worth of data, you only have to add one figure a year. My City's growth dollar sales value shows a 150% increase every 8 years. It is valuable to know where you are in the cycle - so it is worth doing the figures. By that I mean, if you sold a property in the seventh year of the cycle, you'd make about 90% profit on your 'buy-price' but by waiting one more year it becomes 150%. Stats are important, so do the homework. After all, all you got to do is get some figuresfrom an office for FREE and put them on an spreadsheet. Question 2. How do changes in interest rates affect sales of first time new home, middle class, and estate housing? Aside from the obvious, any interesting statistics or trends? Master Builder & Developer's Reply: I'll tell you a secret. The answer is that it doesn't affect the new home part of the housing industry. If you watch the news when you hear about the housing industry in a slump or slowing down -- Greenspan in on the news within a few days adjusting the interest rates to ensure continued growth. The building industry is the engine of our economy. If a country has had an economic slump and the Government wants to kick it off again, they start by 'flicking on' on the new home building industry switch. It is the quickest to react; quickest to increase employment figures which pays for groceries, mortgages, school fees - you name it. Two economists arguing will give you three opinions, but they all agree on the 'economic multiplier effect.' That means that a $100 million project has an economic effect in the community of about $230 million. That is the steel in the building pays the company who made it, who then pays the wages of the workers, who then pays the grocer who then pays his staff, who then pay their rent, car payments and so on - it goes round and round. What does affect the new home industry is lower wages and our jobs going to foreign countries. If people can't afford a home, then they don't buy and that directly effects the housing industry. Question 3. What progressive processes are being implemented for more environmentally friendly and better insulated new homes? All concrete framing? (no wood) Other unique materials and approaches? Master Builder & Developer's Reply: As a Master Builder, we use the current technology in building material. Concrete is outdated and has many environment problems. Our new homes are the most environmentally friendly homes that you'll ever have built. No wood is used except for molding and cabinets. But the problem is convincing the buyer. We have access to material that replaces wood products, that are made up of recycled material that is vastly superior and looks more real than wood. We have access to luxurious carpet that is made from recycled plastic soda bottles. We have access to recycled paint that has no out gassing. Recycled roofs that have a 20 year warranty. Our homes have an R-70+ rating. Meaning less energy required for heating and cooling. There are the 'traditionalists' and there are the 'innovative clients' - all we can do is educate and then the clients will benefit and so will the environment. Question 4. What changes are being implemented to improve customer service to new home buyers? (My daughter is buying a Hovnanian home for a fraction of my last home purchase, yet she is getting a weekly status call from her new home sales representative!) Master Builder & Developer's Reply: This depends upon your builder. In our case we provide our buyers, investors and developers with daily video updates. They log into their account on our site and the site supervisor walks them through what was completed for that day and what is scheduled for the next day. Our clients have video documentation on their property. We also provide service after the sale. If three years after the purchase, the neighbor throws a ball through the window or the cat destroys the carpet -- all the buyer has to do is log on to their account. They tell us what needs to be replaced or repaired and in what room and we can do it almost immediately, because everything is in our database about the home. Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries Of His Independent Web Site, http://www.realestatedevelopmentcoach.com/ez
MORE RESOURCES: San Francisco's real estate market is crashing New York Post Blackstone's Beleaguered Real-Estate Fund Stems Exodus The Wall Street Journal Annie Leibovitz Just Listed Her Rural California Estate for $8.995M Business Insider Spring remains a seller’s market in Nashville WKRN News 2 Judge Approves $418 Million Settlement That Will Change Real Estate Commissions - The New York Times Agencies' headquarters in DC remained 'nearly empty' in 2023, real-estate board finds Federal News Network Charlotte County cash buyers bolster mixed real estate market Gulfshore Business Real Estate Taxes Due, Wednesday, May 1 | Boxford MA Boxford MA | Manhattan Real Estate Update: "Embrace the Boredom" westsiderag.com Top Payment Trends in Commercial Real Estate: A talk with JPMorgan Chase's Lisa McDonnell Commercial Observer Bill Vanderstraaten, Scott Rohrman to join North Texas Commercial Real Estate Hall of Fame The Dallas Morning News The agency imperative to manage real estate more effectively Federal News Network Reversing the Real-Estate Doom Loop Is Possible. Just Look at Detroit. The Wall Street Journal Commercial Real Estate Pros On the Finance Market: 'Not a Typical Cycle' – Commercial Observer Commercial Observer Commercial Real Estate Financiers Pivot Plenty in Changing Debt Market Commercial Observer Atlanta Real Estate Investor's Sales Pitch Is a Curveball: Lease Office Space, Become Co-Owner CoStar Group Alternative Lenders Help Fill Commercial Real Estate's Debt Gap Commercial Observer REAL ESTATE SPLIT CORP. Completes Overnight Offering Yahoo Finance Former HGTV star gets jail time for real estate fraud WDAF FOX4 Kansas City Judge grants preliminary approval of $418 million settlement that will change real estate commissions North Bay Business Journal Letter to FERC: TDP real estate ad sparks Cheat Lake resident's concern about removing Cheat Lake land from federal ... The Dominion Post Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal Fed Report Warns of High Risks in Real Estate and Housing Norada Real Estate Investments Real estate 2024: Emerging from the storm? White & Case LLP Real Estate Sales Include Two Falconer Commercial Properties Jamestown Post Journal Real Estate Split Corp. Class A Distribution Yahoo Finance SHANNA HUNT promoted to Vice President of Seabolt Real Estate Savannah Business Journal Macomb County real estate transfers recorded Nov. 27-Dec. 1, 2023 The Macomb Daily Y Combinator alum Matterport is being bought by real estate juggernaut CoStar at a 212% premium TechCrunch Cleveland's KeyBank Real Estate Capital names Midwest regional production manager – REJournals REjournals.com New CRE Clients Enter The Picture During Year of Dislocation Commercial Observer Is The Housing Market Going To Crash? Bankrate.com Eliza Solender hosts President's Tea to empower women in real estate Preston Hollow Advocate 10 Real Estate Charts Showing What's Next for Housing: Ivy Zelman Business Insider REAL ESTATE | American Construction Services & American Architectural Group receive 1st Place 2024 American ... washingtoncountyinsider.com CORE Real Estate Partners moves into new Butchertown office (PHOTOS) - Louisville Business First Louisville Business First Property Management and Real Estate Investment Firm Ginkgo Residential Names New Director of Investor Relations Business Wire Naples real estate: Fewer sales, higher insurance. What is happening? Naples Daily News Brockton-area real estate sales for Jan 22 to Jan. 26, 2024. Enterprise News These are the 10 best places to live in Massachusetts, according to real estate experts Boston 25 News Brandywine Realty Stock (NYSE:BDN): Good Value in Challenging Real Estate Market - TipRanks.com TipRanks Inside Bill Gates' real estate, from his Seattle to Florida houses Business Insider Casa Shares Raises $1.5M in Pre-Seed Funding to Democratize Real Estate Investing for Future Generations PR Newswire McClain to Hold Hearing on Commercial Real Estate Market U.S. Politics Today Washington County Real Estate Transactions NYVT Media Brooklyn Listings Six Months Later: Two Sold Brownstoner Buyers targeting newly built homes Crain's Chicago Business Big bill comes due for Martin Selig, giant of Seattle office real estate The Seattle Times US faces real estate risks, Fed report warns Central Banking Chicago industrial real estate market cooling from 2021 high - Chicago Business Journal The Business Journals The Real Estate Agent Pledge: The Jason Mitchell Group's Commitment to Transactional Transparency and Fairness RisMedia.com Baron Real Estate Fund Q1 2024 Shareholder Letter Seeking Alpha Elizabeth Herremans takes her Eagles connections to Serhant - Philadelphia Business Journal The Business Journals Charleston real estate CEO tops in SC on annual billionaires list The Post and Courier Brazil launches public consultation on charging real estate tax for concession assets BNamericas English Austin real estate: March Capital's industrial project rises in Creedmoor The Business Journals From the UAE to the World: The Secret of Allegiance Real Estate's Global Dominance - Markets Insider Braemar Hotels & Resorts, Franklin Street in real estate gainers; Comstock in losers - Seeking Alpha Empty SF office tower at 995 Market St sells at near 90% discount San Francisco Chronicle Real Estate Plays A Big Role In The Local Economy Therogersvillereview |
RELATED ARTICLES
FSBO: For Sale By Owners Chapter Two Sheriff's Deputy Ted Rasmussen was thinking about Carrie-his pregnant waitress problem-when he sighted the traffic disruption meandering near the yellow line on Bay Street. A Bremerton merchant had called the Sheriff's emergency number reporting a wet morning commuter mess. Buying Land For Development Requires Careful Planning and Execution From the desk of Colm Dillon .. Time Is A Major Real Estate Wealth Growth Tool, So Use IT And Watch Your... In Real Estate "Time" is a Wealth Development ToolsReal estate wealth,From The Desk Of Colm DillonHello, Colm here .. Top Ten Suggestions for Selecting a Real Estate Agent In order to find a real estate broker or agent who meets your needs and makes your buying or selling experience a positive one, Century 21 Real Estate Corporation recommends you:DO NOT blindly walk into or call a neighborhood firm and ask for an agent at random.Ask friends and family for recommendations. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. Yes But, How Do I Evaluate Buying Undeveloped Land And Get Into The Business? These real questions on buying undeveloped land are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy."Question 1. Investing in Real Estate Like a Stock A REAL ESTATE STOCK PLANGetting out of the bleachers and into the game!This report is going to explain or attempt to give the stock market investors a basic one-on-one interview with a real estate portfolio manager who has consistently made a profit on 100% of the investment products that were actively chosen and managed. Never a loss, always tax advantaged and sheltered. Fixing Houses for Resale: Three Beginning Steps to Increase Profits and Have Fun Real estate investors specializing in fixers make higher profits when they have a detailed work plan and know how to get around the future resale appraisal issues.Before you begin your fixer makeover, taking a few extra steps helps you make more money, avoid future appraisal pitfalls, and have more fun. Reinventing Real Estate, Part 2: Online and Empowered Consumers Are Taking Charge and Paying Less Demanding consumers"Internet buyers tend to be better informed on market conditions and better prepared to act on the home they want when they start working with a realtor. Luckily for realtors, these changes don't necessarily hurt, as long as they are able to adjust to the new relationship and realize that the new-style buyers value speed and efficiency over guidance when finding a home. Do You Know What Design/Construct (or Design/Build ) Means? I Think You Should! These real questions on 'How To' build are answered by a US Master Builder and myself from the development viewpoint, after I received them from readers of my e-book, "Residential Development Made Easy."Question 1. Four Reasons To Offer Seller Financing An example of seller financing: Years ago I bought a rental property, and nine months later sold it for 15% more, without fixing or improving a thing. The easy terms are what sold it. How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale A new business venture to help home sellers, home staging, assists property owners in preparing their home for the best possible sale. Home stagers visit your home and either tell you how to redesign it or actually do the work for you. Property Investment: Spoiled for Choice in Europes Emerging Markets You could be forgiven for thinking that property is the new dot.com. Secrets of Making Money from Real Estate - Part 2 Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. Vacation Homes Are Becoming A Reality For More Homeowners Whether it's a lakefront cottage or a log cabin in the woods, a vacation home often seems to be a dream that only the wealthy can afford. But these days, you don't have to be a millionaire to own one. Fraud in Real Estate, Are You Being Victimized? - Part II The phone range and Peter was on the other end of the line. "Willard, I have a friend of mine that has a real estate problem. Buying A Home - What Is That Noise!?! You've found the perfect home, closed escrow and just finished moving in. As you happily fall asleep, all seems well in the world. Personal Branding Techniques for Real Estate Agents and Brokers Branding can be done to any product, or any person. Before undertaking an exercise in personal branding, however, consider your distinctive strengths and abilities and what they offer the market place. Not Everyone is Buying or Selling, Some are Doing Both As if one real estate transaction is not hectic enough? many of us end up needing to sell one place in order to move up to the next? this is the "real estate catch 22". Do we buy first?? Do we sell first?? If we are fortunate, these events occur at the same time, but that is not always the case. Should I Invest in Real Estate While Running an Internet Business? Of course you should. I practice this for quite a while and I never looked back. |
home | site map |
© 2006 TIGER MEDIA |