They're Building Houses Like Crazy Around Here!

[Ted S.]

Yesterday, while on my annual trip to Home Depot to buy the cheap Ryobi Fathers Day Drill Special- I do this every year now whether I need a drill or not- its like a tradition every since one of you guys told me Porter Cable is being made in China. I get a coffee and drive around to the 5 or 6 developments in my area. I have been making this drive for quite some time since the recession, most of the time I would find 1 or 2 foundations going in, but never much activity. If I see a builder building on a single lot in a development I don't call it a promising sight, to me it looks like survival.

What I saw yesterday was a real shocker. Doing bank inspections on the side, I have not seen much activity in a long time. Given this side work, I would think I would be aware if things were to change. Yesterday I find ROAD going in. Like I said, 1 or 2 houses means nothing, but when ROAD is going in there is some decent money on the table, houses have to sell to support that. There was many foundations going in. Framing packages everywhere, multiple houses going up, I could see a number with open studs on the interior. INVENTORY!!!! Maybe a Bank is working out the deal to get out or a developer has gotten financing I don't know, all I know is that it was a sight I have not seen since the markets have been on the rising side.

And now...drum roll please... for the first time - more "SOLD" signs than "FOR SALE" signs were posted. A model unit was open. There were building houses like crazy around here.

Maybe this is all the shake down from the expired Tax Credit I don't know, but what a sight it was. Like someone was giving me a Father's Day present.

[Otis P. Driftwood]

The town next to me is having about 2000 units of housing built, mostly low income and chapter 40b. The financing is mostly coming from State and Federal grants. Not sure where all these people who will be living in these units are coming from either.

J

[JohnCR]

Starting to see some new homes going up here. They seem to be cut to the bone, not much in them and no design features. I think the developers are trying to unload their lots. Pretty disappointing actually for the town.

[Allan Edwards]

They seem to be cut to the bone, not much in them and no design features. I think the developers are trying to unload their lots.

I've got some lots in inventory (thankfully no homes) and I'm thinking about doing the same thing, price the houses on the lots at a bare bones finish and amenities to get the price down. If clients want to upgrade, fine, they can upgrade all they want to. But list price is coming down, I'm tired of carrying lots and paying interest and property taxes. I want to live to fight another day, and my custom work is fairly strong.

[David Meiland]

I thought that lots were the hardest thing for you to get your hands on? If you dump them, then what, the customer has to bring their own?

[Allan Edwards]

I thought that lots were the hardest thing for you to get your hands on? If you dump them, then what, the customer has to bring their own?

I have lost some custom deals because I couldn't find lots. Hey David, what do you think of my "idea book"?

http://www.houzz.com/ideabooks/users/allan

[BigLou80]

The town next to me is having about 2000 units of housing built, mostly low income and chapter 40b. The financing is mostly coming from State and Federal grants. Not sure where all these people who will be living in these units are coming from either.

J

The inner city, like Springfield. Speaking of which how is/did your project go there ?

[Ted S.]

I hear all you guys on the unload the lots theory, I know some Banks are doing this, making the builder build on the lots then taking the money. These projects are so far under, they are just trying to minimize the loss and getting out.

But like I said, I saw ROAD going in, that to me is a whole different story. Now they are MAKING lots??? Does that sound right to you guys, do you think it is the same thing? They are not only getting rid of lots but have to make road to get out?

I was just so happy to see road I just wanted to go lay down is some subgrade and run my fingers through class 5 gravel. Next weekend I'm bringing the whole family to play in the catchbasin structures.

[Overbuilders]

I was just so happy to see road I just wanted to go lay down is some subgrade and run my fingers through class 5 gravel. Next weekend I'm bringing the whole family to play in the catchbasin structures.

Ted S, wild and crazy guy. Post film, please. ;)

[BigLou80]

I hear all you guys on the unload the lots theory, I know some Banks are doing this, making the builder build on the lots then taking the money. These projects are so far under, they are just trying to minimize the loss and getting out.

But like I said, I saw ROAD going in, that to me is a whole different story. Now they are MAKING lots??? Does that sound right to you guys, do you think it is the same thing? They are not only getting rid of lots but have to make road to get out?

I was just so happy to see road I just wanted to go lay down is some subgrade and run my fingers through class 5 gravel. Next weekend I'm bringing the whole family to play in the catchbasin structures.

I can show you some road here that went in about 2 years ago, as of this morning it was still being farmed on both sides.

[Otis P. Driftwood]

The inner city, like Springfield. Speaking of which how is/did your project go there ?

Sent you an email on that "project" in Springfield,MA. Things got out of control, and I bailed on my attorney's advice

J

[David Meiland]

Now we all wanna know...

[Overbuilders]

Remodel, baby, remodel!

http://www.denverpost.com/business/ci_15357568

[Dick Seibert]

You are fight Richie, in more ways than one. If this nation continues to follow California into insanity new home building will virtually impossible. Right now I am trying to create a new home and call it a remodel, I can't even call it a "rebuild" or it will be classified as a new home with all the attendant expenses and crazy requirements, the Environmentalists are trying to stop new homes, or at least keep them in mid to high rise developments, or keep them under 1,200 square feet in this Brave New World.

[Ted S.]

Remodel, baby, remodel!

http://www.denverpost.com/business/ci_15357568

Ouch.

I think I will go lick that road in Chicago where they spilled all that beer.