You think I'm crazy, don't you. You may think it's not a good time to do anything, but I've been talking to builders lately and they make a strong case for why it's never been a better time to build. Cornerstone Homes owner KC Jones says, "Material costs are down. Labor is very accessible and costs are down. And land prices are also considerably lower." Sounds good to me, so let's take a closer look at each of his claims.
Material costs are down. Jones says last year at this time a typical window package he would order for one of his high-end homes set him back about $180,000. Today, that same window package costs Jones and his buyers $120,000. Wood is another example. Contractors like Jones are buying beetle-kill pine lumber. If you live in Colorado you know that pine beetles are killing the trees. That's not good for the trees, but it is good for the consumer since these dead trees are being turned into cheap lumber, like 30 cents on the dollar. The practice is also environmentally friendly as it puts the wood to good use instead of simply letting it lay there and decay.
Labor is more accessible and costs less. No doubt here. Speak with trade contractors and they'll tell you they need work. If you need a framing crew they can be on your job site tomorrow. No need to plan weeks or months in advance. Shawn Tieskotter, owner of Precision Flooring in Denver, says he's seen labor cost for carpet installation drop between 5 and 25 percent.
Land prices are way down. The price of land has indeed taken a hit just like the rest of the housing market. Look around and you'll find some tremendous deals on prime acreage.
In essence, all the conditions are right for the perfect home-building storm. Just think, your dream home can be built now for incredible savings. All markets present some type of opportunity, and this one is no different.
Dan Polimino is a Realtor with Fuller Sotheby's International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com.
Comments(0)