"Follow the money"!

By
Real Estate Broker/Owner with Blackburn Coastal Realty

When we read the news, watch detective stories, terrorist activity and just about everything that happens in the world.....to separate fact from fiction we are told in so many ways "Follow the Money".

"Experts" tell us conflicting stories in very convincing prognostications such as the residential real estate market has bottomed out OR that we are in a "dead cat bounce" on real estate prices.  Who to believe?  We already know that "news is not news'....it is a point of view.

Residential constructions uses 45% of lumber produced.....this is not opinion.

Building supplies prices crashed from 2005-2009.....by 65%!

Since 2009 lumber prices have been bottoming and advancing......they are now at an eight year high and climbing fast.....45% in 2012 alone!

Demand is booming.....i.e. housing construction is booming.  In the Tampa Bay area much of this new housing is  no longer of the 1500 sq ft houses that builders were touting during the crash.....but NOW they seem to be back up to the 2500 sq ft levels.....not the "3/2" houses that dominated during the crash but, rather, the 4+ bedroom homes that we thought were history.

Follow the money!

Posted by

William B Blackburn, Broker

Blackburn Investors Realty, Tampa Bay, Florida

JD, GRI,CDPE,CIPS

www.BlackburnInvestors.com

727-322-2900

Comments (3)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

I agree, but we haven't seen anything close to a 45% increase anywhere within hundred's of miles.  Maybe in your market, but we are hopeful.

Jan 14, 2013 10:13 PM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Building is finally starting to pick up in Minnesota too after several slow years.

Jan 14, 2013 10:13 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

The McHouses are baaaaack!

I started feeling it in my area as well. ..

Jan 14, 2013 10:17 PM