Happy New Year………….. I know I’m a little late. There is a good reason for that. Things have really picked up, not just for CUH but for just about every builder I know. Its been slowly building and now I would say we are at a slow simmer. Which is good, we need a slow and steady start up to this next cycle. Too much activity too quickly leads to……well we have been down that road before.
As I drive through neighborhoods I am finding more homes coming out of the ground than we have seen in several years. There is little finished vacant inventory on the ground, about 3 1/2 months at the last briefing I was at.
Another sign of a real estate market on the mend has been the very recent spike in lot prices. Potential tear down candidate have gone up by as much as 10-20% in hot markets, sometimes with multiple offers some by builders, some by individuals looking to build. Bottom line is if its a deal its gone quickly.
Another positive sign is number for speculative homes that are being put on the ground right now. I know several builders who have specs under construction and some of them more that one. I personally think its a good time for a spec and we are definitely considering putting down one this year. That being said I would still guess that 80% of the new construction we are seeing are of the custom build variety.
To summarize, I am very optimistic about where we are headed in the housing market and the economy as a whole, yes we have problems and major debt issues as a county, but you need revenue to pay your debt and I see revenue increasing in several sectors . Housing has always been a major economic driver and as it goes so goes the county. Bottom line, you just cant keep a good county down. Now if we can avoid short term memory loss we might be OK.
Next post labor shortage, stay tuned…………..