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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.
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
Property Investment - What Future For the Biggest Bubble of All Time?
The Economist magazine published a special report in this months issue entitled "House Prices ? After The Fall". Some might call it pessimistic, alarmist, nonsense or worse but only the foolish would choose to ignore the research that comes out of a think-tank with the kind of resources that this highly respected publication has.
Land for Sale
Think owning land would cost a fortune? Think again! While land prices on the extreme coasts motors upward, there are millions of parcels for sale throughout the USA that can fit into anyone's budget. There is probably a land deal that could make you a profit happening right under your nose right now.
Home Selection Checklist - A Good Aid When Choosing a Home
This home selection checklist is a tool to help you select a home that is right for you and your family. Before you select a home and get a mortgage, you need to know if you will be happy with the home you select for the coming years.
Best Places to Retire
Places to Retire: Popular Doesn't Always Mean "Best"Las Vegas, Nevada; Phoenix and Yuma, Arizona; Las Cruces, New Mexico; and Ocala, Florida-just a few names that rank among America's most popular retirement destinations. Unfortunately, their popularity doesn't necessarily mean that they are especially appropriate choices for astute consumers.
Las Vegas Real Estate - Luxury Properties
Las Vegas is known for it's over the top hotels and casinos, larger than life celebrities and jaw dropping shows.Over the past couple of years the Real Estate Market has taken center stage breaking national sales records in 2003 and 2004 with record appreciation rates as high as 52%.
How to Get the Best Price for Your House
The best price to sell your home is always determined by how you compare against your competition, the house down the street. If your property looks better than the next guy's the customer will buy yours.
An Estate Planning Primer
An estate plan can be designed by clients and their professional advisors to achieve the client's personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies with¬out a valid, up-to-date will.
Five Ps of Selling Houses
1. Planning:Know Your Target BuyersThink about your neighborhood and the buyers purchasing homes near your property.
How To Find An Experienced Monticello Illinois Realtor
Finding a professional Monticello Realtor in Illinois is the best way to find the perfect property or home. A licensed realtor can assist you in locating the type of property you want in the price range you desire.
Real Estate Investing - House Problems
Houses can have lots of problemsReal estate investing requires expertise in recognizing these problems and the costs for repair.Sometimes you stumble onto a jewel investment by discovering a house where mom was an excellent housekeeper, and all that's necessary is minor cleanup of the premises to prepare for selling.
Buying a Newly-Built Home? Ten Benefits of Using a Real Estate Professional
It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. However, by using a real estate professional, you have someone to protect your interests and guide you along the right path.
What Should You Do If Your Home Isn't Selling?
It can be very frustrating to put your home on the market, expecting a fast sale, only to find that after six months you're still waiting for an offer. What can you do?First, determine if it's a result of timing.
Why is Now the Time to Buy in Turkey?
Turkey is a paradise of sun, sea, mountains, and lakes that offers the vacationer a complete change from the stress and routine of everyday life. From April to October, most places in Turkey have an ideal climate that is perfect for relaxing on sandy beaches or enjoying the tranquility of mountains and lakes.
3 Strategies For Buying Property With No Money Down
Everyone has heard a story or read about someone who bought a property without paying a single dime as a down payment. But how does this work?There are several "classic" methods commonly used to purchase real estate with no money down.
What Is Home Staging And How Does It Help To Sell My House
Home staging is the concept of preparing a house for sale. This can involve everything from removing clutter, re-arranging furniture and in some cases re-decoration, ensuring that the house creates a great first impression and helps buyer's to feel that they could really live there.
As a Realtor, How Do I Attract Listings?
Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers.
Youre Not Paranoid: The House Really Hates You
If you've just bought a house, you may be able to relate to a fascinating essay in Maya Angelou's book, Even the Stars Look Lonesome.When Ms.
Decorating to Sell a House by Meeting Three Key Needs
Specific marketing campaigns are no longer just for automobiles and designer clothes. Targeted marketing techniques are now applied to houses that are for sale.
How Much is that House in the Window?
With the recent release from the UK's biggest mortgage lender, the Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0.
5 Steps To Choose the Best Cincinnati Realtor
Excluding some professional real estate agents buying a house is a lifetime decision for most people. Whenever a person is decided about purchasing a house he is ready to invest a hefty amount of his lifetime savings for acquiring the house.
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