It has been a cold wet spring and people have really been upset and cranky with the weather. Well this week it changed, at least we have summer temperatures but also lots of rain. At the rate it is coming down you might think we are experiencing a monsoon as humid as it is. Hopefully we won't have the flooding we experienced from last year.
Any way it does really slow the building process, and delays occur but that is part of the normal process early in the year. From my perspective it would be nice to build everything in last September or early October the best weather of the year.
Speaking of the best time to build a new home, it may be now!!! Lowest interest rates ever, lumber prices not seen in this decade and subcontractors offering better pricing to keep crews and business moving forward. It won't last for ever and when the national economy recovers, perception will change and it will you will see pricing go back to previous levels. However, in our area it has been real busy for many of the custom builders in the area yet price adjustments have occurred. Are building permits down from the highs? Yes but we are just back to a good normal and the huge amount of homes built yearly we saw in 2006 and 2007was unsustainable.
Most of the customers we are working with are budget conscience and builders like ourselves are working to fit that home in their price concerns. Its really fun again to be able to make those price adjustment for our customers so that they get the best deal that can be had and we can make a little profit to keep building which is our passion.
If you have been thinking that you would like to make a move, the real estate market here is short of homes. Maybe its time to check out your current home value as they have been moving up. I know my personal goal this year is to sell my current home a get a new one built in a great building climate.
Saturday, June 20, 2009
Friday, April 3, 2009
How is the real estate market? Really? Hot Hot Hot
Many people are asking these days "How is the housing market doing, I hear its really bad out there right now!" My answer been the same for sometime, "If it gets any worse I'll have to hire more help to keep up."
This data below I received from the Board of Realtor's this morning:
Iowa/Black Hawk County Foreclosure Data Bob Reisinger - 4/3/2009 7:58:19 AM
While preparing for a talk next week, I came across some statistics on foreclosure rates and numbers in Iowa. This might be of interest to your buyers and seller in our market:
Background: In 2008 IOWA had 5400 foreclosure filings. It was a 31% increase over 2007 and 136% increase from 2006.
Nationally IOWA ranked 37th in TOTAL Foreclosures and IOWA's foreclosure RATE was ranked 40th nationally. National RATE was 1.84% of Housing units filed. In IOWA, 0.41% of the housing units filed. Overall IOWA accounted for less than 1% of the 2,330,483 filings nationally.
Five (5) Iowa counties accounted for 67% of the 5400 filings.
Polk County (Des Moines) - 1735 filings - .96% rate
Linn (Cedar Rapids) - 627 filings - .69% rate
Scott (Davenport) - 519 filings - .74% rate
Pottawattamie (Council Bluffs) - 425 filings - 1.09% rate
Woodbury (Sioux City) - 297 filings - .71% rate
BLACKHAWK County had a rate of .07% and ranked 71st of the 99 counties in the state.
The above information is from the IOWA Independent - A center for Independent Media
I realize that with all the news we see everyday about how bad it is in our home building industry out there that I am thankful that our market has held up this well. We may not be getting all that we would like to see for our homes and products but we are a far cry from the financial detestation seen in other parts of the country. As long as you are staying in the area the spread to move up or down is about the same spread as it was in the good times.
Just today heard there were 10 lot sales this week in one subdivision and many more people starting to search. Our website activity is at all time highs. Low interest rates, 4-3/8 % for 30 years!!! WOW its the lowest that it has been in my 35 years in the building business and real estate business.
Prices for materials are really low, less than 1/2 of the highest price and many sub prices are steady and some are dropping. It's a fantastic time to build or buy, a once in a life time opportunity.
Judging by the huge up swing in the stock market and the rise in the homebuilders stocks the low prices will not last for long. You snooze you lose!!!
Craig the Builder
This data below I received from the Board of Realtor's this morning:
Iowa/Black Hawk County Foreclosure Data Bob Reisinger - 4/3/2009 7:58:19 AM
While preparing for a talk next week, I came across some statistics on foreclosure rates and numbers in Iowa. This might be of interest to your buyers and seller in our market:
Background: In 2008 IOWA had 5400 foreclosure filings. It was a 31% increase over 2007 and 136% increase from 2006.
Nationally IOWA ranked 37th in TOTAL Foreclosures and IOWA's foreclosure RATE was ranked 40th nationally. National RATE was 1.84% of Housing units filed. In IOWA, 0.41% of the housing units filed. Overall IOWA accounted for less than 1% of the 2,330,483 filings nationally.
Five (5) Iowa counties accounted for 67% of the 5400 filings.
Polk County (Des Moines) - 1735 filings - .96% rate
Linn (Cedar Rapids) - 627 filings - .69% rate
Scott (Davenport) - 519 filings - .74% rate
Pottawattamie (Council Bluffs) - 425 filings - 1.09% rate
Woodbury (Sioux City) - 297 filings - .71% rate
BLACKHAWK County had a rate of .07% and ranked 71st of the 99 counties in the state.
The above information is from the IOWA Independent - A center for Independent Media
I realize that with all the news we see everyday about how bad it is in our home building industry out there that I am thankful that our market has held up this well. We may not be getting all that we would like to see for our homes and products but we are a far cry from the financial detestation seen in other parts of the country. As long as you are staying in the area the spread to move up or down is about the same spread as it was in the good times.
Just today heard there were 10 lot sales this week in one subdivision and many more people starting to search. Our website activity is at all time highs. Low interest rates, 4-3/8 % for 30 years!!! WOW its the lowest that it has been in my 35 years in the building business and real estate business.
Prices for materials are really low, less than 1/2 of the highest price and many sub prices are steady and some are dropping. It's a fantastic time to build or buy, a once in a life time opportunity.
Judging by the huge up swing in the stock market and the rise in the homebuilders stocks the low prices will not last for long. You snooze you lose!!!
Craig the Builder
Wednesday, March 18, 2009
Spring is here, let the building begin!!
Yep its spring! Not everything says it is except we have had a 70 degree day, its muddy on top of the ground and frozen 12" below grade. Were digging holes,pouring foundations and the framers are working in full force. Maybe this is the year that those active adults decide to right size into a new home.
You say,"What is an active adult and what is right sizing? For some right sizing is downsizing but for most its making a home the right size for the many needs that many always wished they had or needs that may arise in the future. Active adults are those who want to continue an active lifestyle as long as possible without wanting to relocate in the future to a retirement center or a assisted care facility. It's about purchasing the last home you may ever need to buy, custom built to your plans and ideas yet taking into consideration mobility and future heath needs as they arise.
Think about your heredity and what your elders, siblings and other relatives have had come into their lives, that may give you a sneak preview of what your needs might be. Did they experience eyesight problems,arthritis, allergies, heart conditions and mobility problems that required assistance. Maybe they needed a wheel chair, walker, railings, grab bars. Maybe their lives could have been enhanced if every area of the home was easily accessible, like no step entries to the home, wider halls and doorways. Maybe if everything was easier to reach, like fewer tall wall cabinets and appliances at a more convenient heights. Roll in showers and vanities at different heights for every occupant need. Better lighting both fixtures and natural lighting from properly placed windows.
But the real key to it all is to do all of these things through a design style called Universal Housing. Homes made to accommodate almost any person who uses the home, yet in a style that most would never know that these accommodating features are even there.
These are a few considerations when thinking about building your home. The newest trend I have seen lately is dishwasher drawers just under the counter top and another dishwasher drawer beneath that. Serves two purposes, one is accessibility and using less water and energy for small loads.
We will explore some of these new features in future blogs.
Craig Fairbanks
Sunday, March 1, 2009
Homebuilders Association, what do we do?
By:
For the past decade the homebuilders parade of homes event has been the most visible image for homebuilders, however we are much more than that.
National Association of Homebuilders (NAHB) is an organization of builders, subcontractors, suppliers and associates whose goal is to provide a professional cohesive group with one thing in mind, providing the best possible product for the customer. We provide scholarships for deserving student to advance in the profession of homebuilding. We have done may community related projects like shelters for the city, ramps for the handicapped, and help with building homes with Habitat for Humanity.
When a builder joins the National Association of Home Builders they are making a serious decision to become the tops in their field of expertise. When you look at our national website WWW.NAHB.org as a member or consumer you quickly realize that there is about any information you would like to know about housing. You will find that homebuilder members are the leaders and innovators of
Homebuilders are also given access to superior home building standards that are far above the minimum code. Our members are not just looking to build to minimums but to constantly get better and to be innovative. Homebuilders do a great job of educating our buyers so the process of custom building is not a complicated or scary process. We have access to the latest energy savings programs that help our members build very energy efficient homes. NAHB is a leader in many other research initiatives as well.
Education for homebuilders is some of the most comprehensive training that you can get. When pursuing a designation for specific field of work, such as Certified Aging in Place Specialist (CAPS), many classroom hours are required to achieve this designation, along with tough testing to make sure you are qualified to be a leader in that type of work. Other designations include Certified Graduate Builder, Graduate Master Builders, Graduate Master Remodeler, Certified Green Builder and Certified New Home Marketing Specialist. Most of these take years to obtain not days or months.
Other benefits are just being around those who have been fine tuning and building a better business over a lifetime, its rubs off on our fellow members. When you talk with those who are member homebuilders and with builders who are not, it doesn’t take very long to realize there is a difference in the level of professionalism and competence. Most home builders members use advanced building methods and tech savvy ideas to make home building enjoyable for home buyers.
Legislation is a very key area that homebuilders work on. The Stimulus package that is probably passed by now in congress was very much a National home building issue that backed a plan called “Fix Housing First.” www.fixhousingfirst.com/ Part of the original package that was passed by the Senate was a $15,000 tax credit to buy a home. The basic premise is to shore up home values that were the start of a declining economy nationally. Here is the
Locally we are constantly defending private property rights and work for good legislation that keeps housing reasonable. This is a constant effort that we have to undertake almost daily through our codes and legislative committee. Impact fees, code changes, subdivision and city ordinances are constantly pushing housing costs up. Over the past 2 years we have worked with the cities on Storm Water erosion control, subdivision ordinances, mechanical code changes and many unfunded mandates from the Federal Government.
The next issue is fire sprinkles in the 2009 residential housing code and that will not be a cheap add on. Sounds like a good idea but most fires are in older homes that include old wiring, mechanicals or through carelessness with candles or cigarettes. In just the last 3 years the added cost to a home from code changes, city legislation and ordinances have pushed the price of a home up $32,000 before you even start the project. Thank goodness prices for materials have plummeted and other components are stable for maybe the first time in a decade. We realize that when these costs are raised the homeowner really the one that pays those costs and takes more people out of the buying equation due to affordability.
This is just a small part of what the Northeast Iowa Association of Homebuilders. For further information on our organization on the web at: WWW.CedarValleyHomebuilders.com
Thursday, February 5, 2009
The Stimulus bill, " Magic Bullet?"
Well we continue to hear the debate in the US Senate about what will work the best for the stimulus plan and what is pork and will not create jobs. There are good things and some pretty silly ideas, but I personally see that progress is being made on a plan is making more sense on both sides of the political issues.
One amendment that the National Association of Homebuilders has been working on getting past is the Fix Housing 1st plan that will help stabilize the one thing at the bottom of all of the economic troubles, the demise of a strong housing market. Locally we have been blessed but then we have had a great deal of homes to fix up as well. This fix housing first plan included a $15,000 non refundable tax credit for buying a home. It has been accepted in the senate as an amendment on Wednesday and will stimulate both housing sales and job creation. As it was written I think it includes those who bought in 2008 as well.
This may be the best opportunity to buy a new home with the prices down a little, interest rates way down and now a tax credit to put in your pocket to boot. Like most things let your representatives know that you support these issues. Watch and see what happens to the legislation, if it passes there has been lots of people asking about building this year and if it does pass, builders will be filling up orders for the year very quickly.
Craig Fairbanks
Build Buy or Sell Homes.com
One amendment that the National Association of Homebuilders has been working on getting past is the Fix Housing 1st plan that will help stabilize the one thing at the bottom of all of the economic troubles, the demise of a strong housing market. Locally we have been blessed but then we have had a great deal of homes to fix up as well. This fix housing first plan included a $15,000 non refundable tax credit for buying a home. It has been accepted in the senate as an amendment on Wednesday and will stimulate both housing sales and job creation. As it was written I think it includes those who bought in 2008 as well.
This may be the best opportunity to buy a new home with the prices down a little, interest rates way down and now a tax credit to put in your pocket to boot. Like most things let your representatives know that you support these issues. Watch and see what happens to the legislation, if it passes there has been lots of people asking about building this year and if it does pass, builders will be filling up orders for the year very quickly.
Craig Fairbanks
Build Buy or Sell Homes.com
Wednesday, February 4, 2009
Building codes and ordinances
It will never end!!
Once the economy slows down people who regulate seem to have free time to advance new rules and regulations. Its a given that when we are all busy with our current work load we don't have time to complain and look for problems, but let the work slow at any government level and all of a sudden we need to correct the systems that are now failing. More regulations, more codes and more costs that are of little benefit to the citizens.
Somehow if someone else is paying that its no big deal to me. Don't we ask ourselves when it will be our turn to suffer the loss of funds due to mandates? Ultimately it is a loss of freedom to somone. Its easy to get jaded about government and regulation when we are shell shocked by just the shear mass of legislation that can be churned out faster than any of us can even comprehend what it means to us.
Yesterday I spent time in Des Moines with some legislators from our area at the State Homebuilders Association legislative reception. I was told by one of our representative that 64 pieces of new legislation had already been intoduced in this early state legislative session. You would think that without funds to spend this year that it might curtail some of the bills, but no the focus is on items that cost the state nothing and onto bills that cost us money for compliance.
I learned that there were many items that even the legislators do not get to debate. Appointed officials can almost single handely make a call on a new code just by their endorcement. Basicly its taxation with out representation. Most of it sounds like good ideas until you dig a little deeper and find that what is shown is only the tip of the ice burg.
Locally we are working hard to get adjustment to the subdiviion ordinance in Cedar Falls. Developers are being told that ground will be taken from them to provide public trails through these private neighborhoods. Worse yet being asked to build the trail and maintain it forever. Homebuilders are for trails and have no objection to that but to ask them to absorb it is not going to happen, all costs are passed onto the homeowner. Trails are good right? ,until they decide that land you have been using needs to be taken for a public purpose and diguese with a terms called easement. Just one of the many expensive and objectionable conditions contained in this ordinance that will reduce to a stand still development in Cedar Falls. Well if this passes don't look for price increase on home building lots.
Oh by the way we haven't even gotten through this issue with the city and a new one has been sent our way called post construction ordiance that we add even more costs. The goal of this one it to eventually make all homeowners maintain the water on their own property up to a rain fall event of 1-1/4" of rain on the site. You will be responsible to change you landscaping is such as way to comply. I have no problem with this either except to say that if its a good thing that it can be maketed so that people desire to do this no forced to make the change. If Cedar Falls is trying to slow or stop development this will get the job done.
More soon watch the local news for additional developments.
'
Once the economy slows down people who regulate seem to have free time to advance new rules and regulations. Its a given that when we are all busy with our current work load we don't have time to complain and look for problems, but let the work slow at any government level and all of a sudden we need to correct the systems that are now failing. More regulations, more codes and more costs that are of little benefit to the citizens.
Somehow if someone else is paying that its no big deal to me. Don't we ask ourselves when it will be our turn to suffer the loss of funds due to mandates? Ultimately it is a loss of freedom to somone. Its easy to get jaded about government and regulation when we are shell shocked by just the shear mass of legislation that can be churned out faster than any of us can even comprehend what it means to us.
Yesterday I spent time in Des Moines with some legislators from our area at the State Homebuilders Association legislative reception. I was told by one of our representative that 64 pieces of new legislation had already been intoduced in this early state legislative session. You would think that without funds to spend this year that it might curtail some of the bills, but no the focus is on items that cost the state nothing and onto bills that cost us money for compliance.
I learned that there were many items that even the legislators do not get to debate. Appointed officials can almost single handely make a call on a new code just by their endorcement. Basicly its taxation with out representation. Most of it sounds like good ideas until you dig a little deeper and find that what is shown is only the tip of the ice burg.
Locally we are working hard to get adjustment to the subdiviion ordinance in Cedar Falls. Developers are being told that ground will be taken from them to provide public trails through these private neighborhoods. Worse yet being asked to build the trail and maintain it forever. Homebuilders are for trails and have no objection to that but to ask them to absorb it is not going to happen, all costs are passed onto the homeowner. Trails are good right? ,until they decide that land you have been using needs to be taken for a public purpose and diguese with a terms called easement. Just one of the many expensive and objectionable conditions contained in this ordinance that will reduce to a stand still development in Cedar Falls. Well if this passes don't look for price increase on home building lots.
Oh by the way we haven't even gotten through this issue with the city and a new one has been sent our way called post construction ordiance that we add even more costs. The goal of this one it to eventually make all homeowners maintain the water on their own property up to a rain fall event of 1-1/4" of rain on the site. You will be responsible to change you landscaping is such as way to comply. I have no problem with this either except to say that if its a good thing that it can be maketed so that people desire to do this no forced to make the change. If Cedar Falls is trying to slow or stop development this will get the job done.
More soon watch the local news for additional developments.
'
Friday, January 23, 2009
Its here!!! 2009 Yipee
Well you would think that the new year would bring a new and brighter future but the news is still the same on the economy, sometimes they say its getting worse, then its better no its worse. By the talk you would think we should all be running down to the soup kitchens like in the 1930's so we can at least eat. The news is like the weather forecast, its just better to look out the window and see what really is going on, what ever it is now it soon will change. So what is happening in our hometown.
Well, in the Cedar Valley, we are bucking the collape trend in housing . Home starts have come down from the rocket records of 2005 yet we are just at a normal solid level that we have seen over the last 15 years or so. Our area home builders and remodelers are busy with projects or planning new ones for the coming year. Just turn off the news and we will all be just fine, the media always has to create a crisis so we will be drawn to the news and they can sell their advertizing at a premium. Its always about the money, or follow the money to find what the true motives are.
We have been kept busy with rebuilding a tornado ravaged town
to the tune of 250 + homes. It is quite a seen over in Parkersburg now with all the homes going up, but remember these pictures of distruction. Also the floods in June in Cedar Falls and other metro areas also have contributed to our crews remaining busy. Many homes will be torn down and many will need to be rebuilt.
Somethings have changed this year, I was elected to President of the Homebuilders of Northeast Iowa. I really am looking forward to what we can do in the Cedar Valley for our customers and the public in general. Right now we are working hard to control the costs of home building and doing a good job of that at the moment but we are continually challanged by codes changes and city and state regulations. The increases are staggering and who pays in the end, the customer buying that new home.The laws that are passed sometimes are more of a solution looking for a problem.
Just a few that have raised our costs are:
Air to air exchangers 2006 $1,800.00
Site erosion control from the city 2007 $3,500.00
Raising the standard for good cents program CFU 2009 $4,000.00
Electrical changes required by new state code 2009 $3,000.00
Lot cost increases due to new CF Subdivision being now being considered is a toxic ordinance that will have little value except to slow development and building $10,000.00 +++
International Residential Coded adopted 2008 Version
Sprinkles required by new code: $10,000.00 +
Total increase due to regulation last 3 years: $32,300.00
Affordable Housing in Cedar Falls, "Priceless and soon to be Non-existent" and at this pace of unsustainable increases, no develpment and no building.
More on this next post SOON!!
Well, in the Cedar Valley, we are bucking the collape trend in housing . Home starts have come down from the rocket records of 2005 yet we are just at a normal solid level that we have seen over the last 15 years or so. Our area home builders and remodelers are busy with projects or planning new ones for the coming year. Just turn off the news and we will all be just fine, the media always has to create a crisis so we will be drawn to the news and they can sell their advertizing at a premium. Its always about the money, or follow the money to find what the true motives are.
We have been kept busy with rebuilding a tornado ravaged town
to the tune of 250 + homes. It is quite a seen over in Parkersburg now with all the homes going up, but remember these pictures of distruction. Also the floods in June in Cedar Falls and other metro areas also have contributed to our crews remaining busy. Many homes will be torn down and many will need to be rebuilt.Somethings have changed this year, I was elected to President of the Homebuilders of Northeast Iowa. I really am looking forward to what we can do in the Cedar Valley for our customers and the public in general. Right now we are working hard to control the costs of home building and doing a good job of that at the moment but we are continually challanged by codes changes and city and state regulations. The increases are staggering and who pays in the end, the customer buying that new home.The laws that are passed sometimes are more of a solution looking for a problem.
Just a few that have raised our costs are:
Air to air exchangers 2006 $1,800.00
Site erosion control from the city 2007 $3,500.00
Raising the standard for good cents program CFU 2009 $4,000.00
Electrical changes required by new state code 2009 $3,000.00
Lot cost increases due to new CF Subdivision being now being considered is a toxic ordinance that will have little value except to slow development and building $10,000.00 +++
International Residential Coded adopted 2008 Version
Sprinkles required by new code: $10,000.00 +
Total increase due to regulation last 3 years: $32,300.00
Affordable Housing in Cedar Falls, "Priceless and soon to be Non-existent" and at this pace of unsustainable increases, no develpment and no building.
More on this next post SOON!!
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