Wow. That was tough. 2009 proved to be a difficult year for most of us in the home building industry. Some went bankrupt. Some took full time jobs. Some retired. Others, like myself, hung on and did the best we could. We were extremely fortunate. BLESSED to be more accurate. Our faith and trust in God has allowed us to endure without panic or fear. We certainly had an off year in comparison to years past. But as I’ve told many who have asked about the state of our business, “It could be better…but it could be a whole lot worse”. We weren’t knocking down doors with an over abundance of work, but we definitely were not closing our doors either. Last summer, North Carolina Home Builders Association President Frank Wiesner spoke before the Harnett County HBA. He reminded us all that we should feel fortunate. Just as in life, we should cherish every small victory in business. We should thank God daily for being able to turn on the office lights each morning. That attitude has continued to resonate with me heading into the end of a difficult year.
With the difficulties we have faced in the past year, we have taken it upon ourselves to simplify our lives in business and at home. We hope to be leaner and stronger heading into 2010. While recently reading some writings of Henry David Thoreau, I was reminded of the importance of simplicity. Ralph Waldo Emerson said of Thoreau, “He chose to be rich by making his wants few and supplying them himself”. We should not measure our success in business (or life) with numbers. We should revisit what makes us rich. What are our wants and how can we simplify them? Most of us need to change our priorities. Be more content with what we have been given. Thoreau himself put it best: “In short, I am convinced, both by faith and experience, that to maintain one’s self on this earth is not a hardship but a pastime, if we will live simply and wisely.”
In this new year…Live simply. Live wisely. Be thankful. May the New Year provide you with hope, comfort, and anticipation.
Thursday, December 31, 2009
Tuesday, November 17, 2009
It's a Great Time to Build...Really!
I know you hear it all the time. "Prices have never been this low!", or "Deal of a lifetime!". We have all heard the sales pitches. But right now, I can honestly say, it is a great time to build a new home. If you are in the market to build, what have you been waiting for?
Low rates? The national average for 15 and 30 year rates are still at historical lows (www.bankrate.com). And contrary to what you may be hearing, banks are lending.
Low prices? New construction prices are down. With a drop in material and labor prices, our average price per square foot for a new home has fallen over the past few years. Not to mention, builders are anxious to sign new deals. Therefore, most have dropped their markup and reduced company overhead in an effort to get new clients under contract.
Tax credits? As most of you probably know, Congress recently extended the Home Buyer Tax Credit (http://www.federalhousingtaxcredit.com/). Not only did they extend the previous tax credit, but
they included a very important additional credit for qualified repeat buyers for up to $6,500.00. And yes, the credits can be used to construct a new home.
So now you know. It actually is a great time to build a new home. For more information on our custom design-build options or to set up your no obligation design or construction consultation, please visit our website at www.cummingsconstruction.com or call us at 910.814.3232.
Low rates? The national average for 15 and 30 year rates are still at historical lows (www.bankrate.com). And contrary to what you may be hearing, banks are lending.
Low prices? New construction prices are down. With a drop in material and labor prices, our average price per square foot for a new home has fallen over the past few years. Not to mention, builders are anxious to sign new deals. Therefore, most have dropped their markup and reduced company overhead in an effort to get new clients under contract.
Tax credits? As most of you probably know, Congress recently extended the Home Buyer Tax Credit (http://www.federalhousingtaxcredit.com/). Not only did they extend the previous tax credit, but
they included a very important additional credit for qualified repeat buyers for up to $6,500.00. And yes, the credits can be used to construct a new home.So now you know. It actually is a great time to build a new home. For more information on our custom design-build options or to set up your no obligation design or construction consultation, please visit our website at www.cummingsconstruction.com or call us at 910.814.3232.
Thursday, July 23, 2009
Fall Market
With the construction market currently showing some signs of improvement, many are left wondering what the fall and winter seasons may hold for us home builders. Historically we start to see a seasonal slow down as winter approaches and showings start to dwindle as folks start to board up for winter. I wouldn't expect this year be any different.
There are some signs of optimism. Signs there may be a light at the end of the tunnel, albeit still a ways down the tracks. Interest rates remain at historical lows, sales numbers are starting to rise, oil remains in check and material and labor cost continue to remain low. However, there is still some fear and uncertainty that remains. I estimate that it may take the remainder of this year and the first few months of 2010 before we begin to completely remove ourselves from this slow environment. There are still bad loans that need to show themselves and be taken care of. There are still plenty of folks looking for jobs, looking for security. There is still inventory that needs to be weeded out.
These are not bad things. Unfortunately, these are just cycles in the market that must come to pass. We have made it through over 18 months of this recession. Many believe this recession began in December of 2007. I feel comfortable in saying the worst is behind us. The next few months should continue to show signs of improvement. Unemployment should begin to level out and inventories will begin to shrink. I am encouraged and believe 2010 will be a strong year. We should see prices stabilize and begin to rise.
There are some signs of optimism. Signs there may be a light at the end of the tunnel, albeit still a ways down the tracks. Interest rates remain at historical lows, sales numbers are starting to rise, oil remains in check and material and labor cost continue to remain low. However, there is still some fear and uncertainty that remains. I estimate that it may take the remainder of this year and the first few months of 2010 before we begin to completely remove ourselves from this slow environment. There are still bad loans that need to show themselves and be taken care of. There are still plenty of folks looking for jobs, looking for security. There is still inventory that needs to be weeded out.
These are not bad things. Unfortunately, these are just cycles in the market that must come to pass. We have made it through over 18 months of this recession. Many believe this recession began in December of 2007. I feel comfortable in saying the worst is behind us. The next few months should continue to show signs of improvement. Unemployment should begin to level out and inventories will begin to shrink. I am encouraged and believe 2010 will be a strong year. We should see prices stabilize and begin to rise.
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