Karl E. Case’s recent OP-ED piece in the New York Times offers a contrarian view from today’s headlines about the value of home ownership. He makes several good points about why home ownership still makes sense. A good read for builders and manufacturer’s of building materials.
Home prices are down 60% in Las Vegas. There are 9,517 brand new unsold homes. 5,600 homes were repossessed in the first quarter of 2010. And yet builders are working on 1,100 more new homes and looking for land to build more! It makes no sense yet it’s happening. What are you doing as a building material manufacturer to be part of this opportunity? What other unlikely markets are showing activity? Read the whole story in the New York Times.
After a rise on construction for the third straight month, building permits have also risen showing a confidence by builders who also believe the government tax incentives will continue to lift sales. At the same time the University of Michigan’s consumer-sentiment index declined from 73.6 to 69.5 at the end of March. While many signs show that the recovery is under way, it’s not a good sign that consumer confidence is dropping, especially for major purchases such as a new home or remodeling project. Read more from this Wall Street Journal article.
Remodeling Magazine’s most recent study on the payback of home remodeling projects show a shift from aesthetics to performance. Granite counter tops, custom vanities and showers large enough for eight people have given way to improvements such as insulation. Building material manufacturers, remodeling contractors and big box retailers like Home Depot and Lowes need to be on top of this important trend. You can read more in this article from the Wall Street Journal.
Recent issues with Chinese drywall points out an opportunity for builders and manufacturer’s of branded building materials to differentiate themselves from lower cost offerings. Consumers recognize the tremendous risk and cost associated with the use of shoddy materials in construction. Builders and manufacturers should use this to their advantage by reminding consumers of their product quality along with a subtle reference to risks of using lower cost generic products. Handing out reprints of this article from the New York Times could help to educate consumers about the risks of not using quality materials.
No matter how bad the economy seems, people still need a place to sleep. Two recent reports show that they may have had enough of doubling up or living with mom and dad. Apartment rents are rising due to increased demand as reported in the Wall Street Journal. Also The New York Times reports that home sales rose significantly in February. Both are good signs for an uptick in construction and remodeling to follow soon.
Homebuyers are now using apps from IPhone to aid in their house hunting. It’s time for manufacturer’s to offer their own apps to aid home buyers. For example checklists on energy or features could help differentiate homes with your products and encourage future upgrade sales. Read more in the WSJ
Just when builders don’t need it, lumber prices are rising which puts added pressure on keeping new houses price competitive. Read the story from the Wall Street Journal
Good news on the housing front is starting to gain more momentum as another story appears in the Wall Street Journal. If the media continues to report positive stories it will help to lift consumer confidence on home purchases.
From this morning’s Wall Street Journal
The housing market isn’t yet in the clear, but it’s also not as weak as Monday’s home-sales report might suggest.
Read Kelly Evans article here
