It is the time for us to
move forward without hesitation OR current events will freeze your ambition and
dampen your will to succeed in the real estate industry.
Costs Who cares about costs!!! Government? Stakeholders?
The
cost to build a new home is over 50% of the sales price of the home – this is a
new norm responding to buyer demands. Out of control spending by the federal
government is the role model and bailouts the new compassion. When those
without total regard to costs are the ones that cause the problem and are the
ones being asked to correct the problem, our path to prosperity is derailed.
New
home construction will not disappear but builders will not be able to raise prices just
because costs increase.
Construction Labor
shortages will be the headline in 2014 and beyond
Material cost
increases will be the headline in 2014
Builders will demand attention when they
start paying weekly!
Are there any developers left?
If
you research past recessions, labor and material shortages weighed on each of
the subsequent recoveries but interest rate adjustments downward spiraled
housing expansion.
This is not the case today! Where did the labor disappear
to? Isn’t it reasonable to suggest that manufacturers of housing products
either went out of business or scaled back production over the past six (6)
YEARS?
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