| |
| |
|
|
Real Estate |
|
New Housing Starts Do Not Guarantee Aftermarket Sales
We have been studying a trend of new home buyers in the US in light of this latest housing boom. And how we should adjust our strategies to deal with it. Last year we saw 5.56 million sales of existing homes and we all know that the number of brand new homes was substantial to say the least. This incredible surge in new housing starts was due primarily to mortgage rates at all-time historical lows. And the incredible move-in deals, for instance loans with less than 1-3% down payments. 20% of our population took advantage of this by re-financing, remodeling, moving or buying a new home. 43 million Americans moved between 1999 and 2000, this trend continued even to today's date we see areas of hyper growth. On both sides of the country and yes, some in the middle too, places like; Dallas, Denver, Kansas City, Oklahoma, Nashville and Phoenix suburb areas all saw strong growth in 2003 and much of this is continuing as expected into 2004. In 1999 thru 2000 33% of renters moved and 9% of homeowners. What does all this mean to service companies? Well it means the discretionary expenditures for home related items and services is about $6,500.00 on average. First time home-buyers spent $2500.00 less on upgrades and improvements. This of course is important to landscaping companies who deal with residential properties and consumers. We noticed it in our group of service companies, which specialize in those sectors: Window Wash Guys; The Deck Wash Guys; The Concrete Wash Guys. But were heard the same thing from pool builders, furniture sales and BBQ sales. Another interesting trend is that new homeowners are 35 percent more likely to buy a one or more new cars, at least that is what the latest surveys are showing for the years from 1999 to the current if they have purchased a new home. We know in the carwash industry that our industry tracks new automobile sales for three years. This is because people with new cars tend to be more at attached to those automobiles (not like Jay-Lo and her latest boyfriends or Super Star Woman Teen idol and singer with her new husband for 23 hours in Vegas) as it is an extension of their personalities, because of this relationship with the automobile those owners are more likely to take a really good care of it while it is still new. As a matter of fact at the Car Wash Guys http://www.CarWashGuys.com we have noticed that detailing inquiries for new cars outrank those for much older cars by a 5 to 1 margin. The same thing is true with new homes. Companies like Lowes and Home Depot are showing incredible gains, Home Depot just announced it was going to build 175 new stores in the next three years spending over $1.6 billion to do it. http://www.carwashguys.com/072302_3.shtml Why is this happening? It is happening because the pie of overall customers has increased by over 25 percent since 1999. This means that 25 percent of Americans who previously did not own a home, and now do. This is a testament to the strength of the middle class as well as the trust in the security of the ongoing endeavors of a great civilization with a strong economy and strong central bank. However, we have also noted a slight trend in the decrease of the total number of dollars being spent by those buying into new homes. We know why this is because, the average consumer is tapped out; they have blocked cars on zero-zero down and bought homes on one to three percent down. There were also 3 million U.S. citizens who had lost their jobs in the same time. Just because a past trend has translated into a sub-trend you your sector does not mean it is always guaranteed to play out that way as there are many other factors involved. It is a lot like predicting the weather; with so many variable sometimes you just cannot know and then there are regional anomalies in some areas which buck the first trend. Think on this. "Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Be A Realtor With Curb Appeal Are you a realtor with curb appeal or are you more of a fixer-upper needful of updating?How you present yourself to colleagues, buyers and sellers, from the very first moment, will influence your sales records as well as the confidence and satisfaction your new clients feel. Even if you're a Realtor in demand, with more listings than hours in a week, you may well find areas that you can polish. Selling Houses: Design Psychology Works! I've taught the concepts of Design Psychology for many years, and I know how much it can empower a person, and allow them to create a fabulous home that sustains their emotions. Since it's based on science, I know that Design Psychology is effective at turning plain spaces into happy places. To Buy or Not to Buy Purchasing a home is a major emotional and financial decision. Often times, people want to buy a home; however, emotionally cannot afford to commit to the home-buying process. 7 Different Ways Anyone Can Become a Real Estate Investor Being a real estate investor is not really that hard, Sometimes you do not need any money down. Other times you do not need any of your own money down. Inspecting Your New Home - 17 Areas You Must Inspect Before Taking Possession Congratulations! You've made your decision; you've chosen your new home and your builder. So what needs to happen next? Once you have a firm contract and you have selected the features that will go into your new home, it is time for the builder to turn your dream into reality. Buying A Home - Rain, Sun, and Weather Issues When buying a home, it can be easy to overlook year-around weather issues. You may think you are purchasing a home in a sunny area, but come to find there is always a heavy cloud cover. Cant Rent a Work Zone So you've picked up your first (or third, or tenth) income property, and it's a real fixer-upper. You've got a great team of contractors, and you know what they need to do and how much time and money it's going to cost to make it happen. Buying A Home - Zoning and Architectural Review Board Restrictions When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. Staging Homes for Top-Dollar Sales Wouldn't it be nice to have Roger Hazard's design team from "Sell This House" come visit for a weekend?Many "redecorators" and designers offer "Staging Homes" services from $250 to $5,000. These services usually give good advice, some help with the actual work involved, and others even move in new furniture for you. Should You Allow Buyer To Rent During Closing? It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree. Finding Structural Problems During Escrow - Upscale Home Example When buying and selling homes, the property purchase is often subject to a satisfactory home inspection being done. Now and then, a home inspection uncovers severe structural problems. Free Tips That Will Dramatically Increase the Selling Value Of Your House (Part 1) Did you know that it's a proven fact that a properly maintained home sells substantially higher then a home that is dirty, depressed looking and clearly not maintained very well? When it comes to selling your house the statement "first impressions are the selling impression" couldn't be any more accurate. This article will highlight some quick tips that will increase the amount of money you can ask for you home when you're ready to sell it. What To Expect From Your House Appraisal Having your house appraised can be a scary step in the moving process, especially if you don't know what to expect. Will your house pass muster or will they find some hidden defects and problems lurking in the basement and attic? Should you scrub the house clean?Don't worry - this isn't a test of how clean you keep your house or even if your house has problems (that will be for the home inspector to find out). What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language Financial literacy is the means of empowering consumers to make informed financial decisions through exposure to accurate and timely information. In no other area is the void of accurate information more evident that in the area of foreclosure. Buying an Unfinished Home Maybe Your Answer For the first time "want-to-be" homeowner, purchasing an unfinished new home maybe just the answer. With mortgage interest rates still at record lows, there has not been a better time to purchase a home in decades. 3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS Earlier this month, Realtor Magazine announced that they would be featuring an article about Tampa Bay Realtor John Mudd and the success he has been having in attracting prospects and media attention with his blog on real estate. Since then, many others in the Real Estate market have been curious about how to implement similar strategies to capture leads in their areas. 11 Steps Away From Buying a Home There is no doubt that the market for houses has been on fire recently. More and more people are taking advantage of low interest rates and easy mortgage loan terms to go from being renters to being home owners. What Should I Do If My Home Isnt Selling? Suppose you've been trying to sell your home for months. You haven't had even a nibble from a prospective buyer. Theres More To Making Money Than A Tertiary Education An education of some sort is a prerequisite these days if you want to start a secure career in whatever field you choose. However, have you thought about where this will get you exactly? Will it help you achieve all your dreams in life, both financial, physical, emotional etc?This article is focusing on the financial and lifestyle dreams that you may have. Home Loans - Identity Theft Protection Could Hurt Home Sales Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor.
|
|||||||||||||||
