Sometimes a national news story helps me see a little farther than my local sources. I saw a couple of things in Bloomberg Business recently that I thought I’d pass along to you.
The rate of new applications to build single-family homes is now the highest in a decade. And the index of positive homebuilder sentiment that’s compiled by the National Association of Home Builders and Wells Fargo is now higher that it has been since June 2005.
OK, new construction trends were already on the rise, but reading a little deeper we see this:
Builders are still contending with labor and lot shortages as they struggle to keep up with solid demand stemming from a strengthening labor market.
What this means for you if you’re planning to build or to improve your home is that you can feel very good about the strength of that decision. It’s always been a wise investment over time. Right now the return looks like it’ll take a little less patience.
But the good news also means taking action farther ahead, because materials and labor are more sought-after than we’ve seen in a long time. Both the National Association of Home Builders and several of our trusted local vendors have indicated that construction materials are going up in price – particularly lumber, sheetrock and concrete. In addition, as the Bloomberg article indicates, the skilled labor pool is in high demand – which leads to higher prices and longer lead times. The repairs and remodeling done after Matthew has also added to the backlog of availability in our local market.
So the bottom line is – you may be able to save time and money by acting now on those building or remodeling plans.
While we’d never try to pass ourselves off as financial experts or economic forecasters, we have stayed in business through almost 40 years of changing economic conditions. So we’re used to keeping our eye on market trends, and are happy to share an opinion or observation with our neighbors and clients. And at this point, I tend to agree with those who say there may never be a better time to get your building project started.
During those 40 years we’ve also built resources and relationships, not just homes. That strength and history goes on your side when you choose Tom Peeples Builder. And the way we communicate before, during and after your project sets us apart even further – we’ve learned that this clear connection with you is just as important as our building skills, our faithful subcontractors, and our local resources in materials and finance.
When business is brisk, like this, it’s even more important to remember that at Tom Peeples Builder, “We make building a pleasure.”