Producing a marketing report from a general contractor's perspective can be a little difficult to accumulate the data necessary to chart the data. Data from home sales, homes in escrow, days on the market, etc. can be generated with a few click of the keyboard. For a contractor's view of the market, I am going to make a few assumptions. The first assumption is that the building permit totals for new construction is the barometer for the industry in El Dorado County. I know that the number of building permits issued in El Dorado County has plummeted since 2005. This is no surprise, the number of permits have been dropping (as you can see in the graph) every year until reaching it current level.

 

 

It is forecast that 10 permits will be issue in the month of September and a total of 110 for all of 2011.

 Compare that to the years previous!

 

So I guess it's all "Doom and Gloom" in the construction industry in El Dorado County, I think not!

 

If we look at the store-to-store sales for many of the large building materials suppliers, like Home Depot, we see that the sales have only dropped a small percentage in the most recent quarter, about 0.2%. So sales are steady while issued permits have declined. this matches what many of us in the construction field are experiencing.

The market has made a shift into the improvement of existing homes. This has happened in several ways.

  • Homeowners who aren't in the market to sell, and are repairing their homes.
  • Investors and first time buyers who are purchasing homes and improving them to sell or reside.
  • Homeowners that have found it better to improve their existing homes to better suite their needs.

Generally speaking the market has shifted to the improvement of existing property. The prices of existing homes has made it not justifiable to build new homes in El Dorado County. So the need for contractors with experience in the repair and improvement of existing homes is where the construction industry is growing.

The data will not show this to be true. Much of the work being done does not require a permit. Projects like the repair of siding, or changing the carpets to hardwood flooring will go undetected excect to those that do this sort of work. If you walk into any Lowe's or Home Depot and ask a contractor what kind of project they are working on, it is likely to be an improvement to an existing home.

 

 


 


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Specialists in Dry Rot and Water Damage Repairs

 

 

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Tom Arstingstall
Tromler Construction
General Contractor
Specializing in Dry Rot and Water Damage Repairs

916-765-5366
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This post has been included in California Real Estate News El Dorado County, CA Real Estate News
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6 Comments on El Dorado County Real Estate Market Report - A Contractor's View.

SEP
04
2011
1,133,537 Points 151 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Good for you in having access to data...I have none.  I did start a trend report.  Maybe I can publish later today.  Wow, what a decline.  No surprise, but still.  Wow.
6:28am • #1
213,407 Points 5 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Good Morning Tom: I suspect your analysis reflects what is going on in most sections of the country. The work changes to reflect client needs and the economy. Contractors I work with are reporting the same thing - a lot of smaller jobs. The big jobs like additons will have to wait. I think the contractors who are flexible are still getting work - it's just different work. A v ery thoughtful, insightful post!
6:31am • #2
378,688 Points 84 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Tom - You found a way and put together a great report so kudos to you. I always watch these DIY shows and commericals and think to myself - they make it look so easy when if fact in's not. I'm smart enough to call my contractor. Too many people think by watching a show they can gut a bathroom or kitchen - big mistake!
8:21am • #3
774,307 Points 95 Featured Posts Outside Blog Called Shot Master

Debbie - Good luck with your trend report, looking forward to seeing what you have.

Anne - I think you may be right, the cycle may be the same throughout the country. Thanks for the kind words.

Kristine - It does look easy on TV doesn't it. Thanks for the kudos! 
2:12pm • #4
SEP
05
2011
229,869 Points 9 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The construction business is going through the same trauma as the Real Estate and Mortgage business.  Everyone has to adapt to the changing market and the type of market niche they market to.  Contractors have gone from major new construction projects to remodels and other smaller jobs.
1:45am • #5
774,307 Points 95 Featured Posts Outside Blog Called Shot Master

True Doug! We have to be aware of what market niche we are in. Fortunately for me, this is my niche.  :)
1:54am • #6


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Tom Arstingstall - An Uncommon Contractor (Tromler Construction): Builder-Contractor in Placerville, CA

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