Wednesday, January 22, 2014

Real Estate - 2014 and Beyond – A Short Series of Predictions and Truths



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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