Don’t Bring Me Down!
In December, The Wall Street Journal stated “Goldman: Housing Market Bottom Is Really, Finally (Almost) Here” and in January, CNN Money reported “New-home sales hit a record low.”
Despite these pessimistic media reports, there is renewed optimism in real estate. It is tangible. Homeowners, buyers, sellers, real estate agents, inspectors, and even stereotypically stoic title insurance companies are all looking to a brighter future. So the news agencies need to listen:
Don’t bring me down!
Musicians from Electric Light Orchestra to Christina Aguliera have used this anthem for a multitude of reasons. I say it to rally the real estate troops ….
We have so many reasons to be optimistic in real estate. Construction and building permits are on the rise across the country, and the construction industry is adapting to market changes at a breakneck pace.
Investors and national developers are finding great deals on developments left unfinished in the down economy. They are picking up the pieces and creating not only beautiful, but saleable, condos and homes. Buying low, making needed repairs and upgrades then selling at a reasonable price is working! The days of only two homes (one of them inevitably a model home) surrounded by empty lots in a new golf course community may soon have a brighter future. There are signs that these vacant lots may soon be sold and improved in the next few years. Bring on the neighborhood barbecues!
Instead of buying new, many buyers are finding great prices on foreclosed homes. Most homes sold in foreclosure do need some maintenance and repairs though, so builders have found a niche. If the house was unoccupied, there is likely some overdo upkeep, and in a surprising number of cases, there is a need for new fixtures, kitchen cabinets and counters, even copper pipes due to houses being stripped by previous tenants.
Even discretionary remodeling has become quite lucrative for builders. Some folks are choosing to stay in their homes rather than upgrade, so they are investing more in modern comforts. Those with good credit can refinance at lower interest rates and sometimes get cash back to put them in the mood to add on a family room or enclose a porch. With the increased emphasis on energy, builders are quickly learning to install solar and geothermal systems in addition to the bread-and-butter insulation and windows.
In closing –
Pessimistic critics said ELO would disband after Roy Wood left the group. Of course, Jeff Lynne may have had to embrace disco to bring progressive rock to the forefront, and new construction builders may have to embrace a few retrofits, but creativity, ingenuity, and optimism will always triumph.
Scott Stevenson
