Improving housing market

The housing market is looking up. I currently have 5 articles in my inbox all commenting on the uptick in the housing market. Ted Wilson of Residential Strategies was on Fox 4 yesterday morning talking about the lack of good inventory. Ted speaks at quarterly meetings I attend where he gives us a briefing of the past quarter in the housing market. Mr. Wilson stated we have just under a 3 months’ supply of finished vacant inventory where as a 6 month inventory is considers healthy.
I by no means pretend to be an economist, but for the last 3 years sales have outpaced construction by 12-15% all the while our population has continued to increase. About a year ago I and several of my builder buddies all agreed we were heading for a housing shortage. I think its safe to say that day is here. There is very little good quality inventory on the market and I think a lot of people who never considered building now are left with no choice if they want a new home. Spec home building is still down as lending requirements for builders is difficult to come by and can require north of 30% down on a interim construction loan.
We have been getting between 3-5 phone calls a week inquiring about the build process. What a pleasant change from 2 years ago when we were lucky to get 3-5 calls a month. We are also getting calls from Realtors with clients inquiring about the build process as they can’t find their clients what they want in current inventory.
With permanent lending rates at or near all time lows and spec home lending still difficult to come by I think custom builds will continue to be majority of the residential construction we see for the next year or two, maybe more in the luxury home market.
For those of us who have been fortunate enough to weather the storms and are lucking enough to still be around the immediate future looks much more promising.

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