How Does Interest Rates Affect New Home Sales and Where's The Best Place To Build?

These existent inquiries on new home starts and interest rates on existent estate are answered by a United States Master Builder and myself after receiving them from readers of my e-book,
"Residential Development Made Easy."

Question 1.

What is the your prognosis for home starts in the United States for the adjacent 12 months? 24 months?

Master Builder & Developer's Reply:

This depends upon where you are. New home starts are first-class for Florida, Texas, and Arizona.

What most people don't appreciate is that there is always growing in new homes. Cities turn in spurts, but there is also controlled growth. As one portion of an country deceases from old age it is revitalized and redeveloped.

So retrieve national growing statistics on new home starts are not much usage to you unless you have got a national business. The best advice we can give you is to "read" market information - nosecount information etc.

Personally I have got kept average residential dollar sales figs on homes for my City since 1974. At first it might look to be a batch of work, but after you have got got your base, state 20 old age worth of data, you only have to add one figure a year.

My City's growing dollar sales value shows a 150% addition every 8 years. It is valuable to cognize where you are in the rhythm - so it is deserving doing the figures.

By that Iodine mean, if you sold a property in the 7th twelvemonth of the cycle, you'd make about 90% net income on your 'buy-price' but by waiting one more than twelvemonth it goes 150%.

Stats are important, so do the homework. After all, all you got to make is get some figures
from an office for FREE and set them on an spreadsheet.

Question 2.

How make changes in interest rates impact sales of first clip new home, center class, and estate housing? Aside from the obvious, any interesting statistics or trends?

Master Builder & Developer's Reply:

I'll state you a secret. The reply is that it doesn't impact the new home portion of the lodging industry. If you watch the intelligence when you hear about the lodging industry in a slump or slowing down -- Greenspan in on the intelligence within a few years adjusting the interest rates to
guarantee continued growth.

The edifice industry is the engine of our economy. If a country have had an economical slump and the Government desires to kick it off again, they begin by 'flicking on' on the new home edifice industry switch.

It is the quickest to react; quickest to increase employment figs which pays for groceries, mortgages, school fees - you name it. Two economical experts arguing volition give you three opinions, but they all hold on the 'economic multiplier factor effect.'

That agency that a $100 million undertaking have an economical consequence in the community of about $230 million. That is the steel in the edifice pays the company who made it, who then pays the wages of the workers, who then pays the grocer who then pays his staff, who then pay their rent, car payments and so on - it travels unit of ammunition and round.

What makes impact the new home industry is lower wages and our occupations going to foreign countries. If people can't afford a home, then they don't purchase and that directly personal effects the lodging industry.

Question 3.

What progressive procedures are being implemented for more than environmentally friendly and better insulated new homes? All concrete framing? (no wood) Other alone stuffs and
approaches?

Master Builder & Developer's Reply:

As a Master Builder, we utilize the current engineering in edifice material. Concrete is outdated and have many environment problems. Our new homes are the most environmentally friendly homes that you'll ever have got built.

No wood is used except for casting and cabinets.

But the problem is convincing the buyer. We have got got access to stuff that replaces wood products, that are made up of recycled stuff that is vastly superior and looks more than existent than wood.

We have access to epicurean carpet that is made from recycled plastic sodium carbonate bottles. We have got access to recycled paint that have no out gassing. Recycled roofs that have got a 20 twelvemonth warranty. Our homes have got an R-70+ rating. Meaning less energy required for warming and cooling.

There are the 'traditionalists' and there are the 'innovative clients' - all we can make is educate and then the clients will profit and so will the environment.

Question 4.

What changes are being implemented to better client service to new home buyers? (My girl is buying a Hovnanian home for a fraction of my last home purchase, yet she
is getting a weekly status phone call from her new home sales representative!)

Master Builder & Developer's Reply:

This depends upon your builder. In our lawsuit we supply our buyers, investors and developers with day-to-day picture updates. They log into their account on our land land site and the site supervisor
walks them through what was completed for that twenty-four hours and what is scheduled for the adjacent day.

Our clients have got video certification on their property. We also supply service after the sale. If three old age after the purchase, the neighbour throws a ball through the window or
the true cat destructs the carpet -- all the buyer have to make is log on to their account.

They state us what needs to be replaced or repaired and in what room and we can make it almost immediately, because everything is in our database about the home.