Custom Home Buyers Waiting in the Wings

By
Home Builder with Artisan Custom Estates

While the timing of the true turning point and bottoming out of the current cycle is still uncertain, one indisputable point is the amount of pent up demand that exists in the marketplace.  With uncertainty and negative press surrounding residential real estate for 18+ months, many would be buyers have been sitting on the sidelines for quite some time, waiting for that critical turning point to provide them with the confidence to move forward with their next purchase. 

Our custom builder group manages a pipeline or funnel of potential customers, which serves as the best leading indicator of future year activity.  For 2008 YTD, the pipeline of our prospects has steadily bulked up to the point that 2009 is looking like a strong year for custom homes.  The prevailing theme amongst these propsects however, is whether they have the confidence to pull the trigger on their dream home amidst the market uncertainty.   Those who have more cash to execute the transaction are more aggressively moving forward, while those who rely more heavily on mortgage financing are tending to hold back until they feel the dust has settled more.

Our read on these metrics is that the underlying demand is gathering steam for new luxury homes in the Atlanta / Alpharetta area, and once the market has bottomed, there will likely be an immediate flurry of new housing starts and activity. 

The timing of the absolute bottom of the current cycle is still to be determined, but for those that are considering building a custom home at some point in the next few years, now is a great time to kick the tires on land selection and architectural planning and thus be prepared to make a move once the market turns.

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Rainer
36,005
Jason & Deanna
Breckenridge, CO

Chris, I would tend to agree with your assessment. Great info!

Jun 22, 2008 08:17 AM #1
Ambassador
2,541,130
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Chris, depending on what you're willing to accept as the "bottom" it likely has hit there or is real close. You can start moving out the other side.

Jun 25, 2008 12:48 PM #2
Rainmaker
67,970
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads

For builders it is hard to believe it can go much lower.  I can see prices being bad for them for a while because they can buy land cheaper now than a few years ago.

Jul 25, 2008 02:13 PM #3
Anonymous
Build Writewell

Greetings Chris and Friends,

Great Line  - and ever so true for perspective home builders.

"be prepared to make a move once the market turns"

A kitchen layout takes understanding and is the center point of homes.

 
Lots of info on this site - I will check back - your viewers may find this new kitchen planning site to be handy. http://www.brandsconstruction.com/Blogb2/blog5.php

An Article Title - Before Hiring a Kitchen Contractor.
http://www.brandsconstruction.com/Blogb2/blog5.php/Kitchen-Contractors-Before-Hiring-Kitchen-Contractors/

Wishing you all the best!

Jul 29, 2008 01:59 PM #4
Rainmaker
377,222
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains

I am hearing more and more that many markets are starting to see stabilization and let's hope that is signalling the bottom in many cases.  It's still anyone's guess but the winds of change are always blowing.

Jul 29, 2008 02:03 PM #5
Rainmaker
1,059,072
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Chris, I can certainly say we have seen an up-tick in the highend buyers and have started a handful of new home projects. It seams people will buy or build in the right location, and they don't mind buying or building custom so long as they get what they want. Steve

Aug 02, 2008 01:09 AM #6
Rainer
10,770
Artisan Custom Estates
Artisan Custom Estates - Alpharetta, GA

Donna - thanks for your insight and for stopping by - i agree that predicting the exact timing of the turn is difficult, but there continue to be signs of stabilization....

Aug 03, 2008 05:02 AM #7
Rainer
10,770
Artisan Custom Estates
Artisan Custom Estates - Alpharetta, GA

Thanks Steve - Great news that you are seeing an up tick in high end activity in NH (A beautiful part of the country BTW).  Once some of the uncertainty from an election year and capital market collapse subsides and buyer's regain confidence, I think we could see some real traction.  Will be intreresting to follow how this week's legislation impacts the market's stabilization.

Aug 03, 2008 05:04 AM #8
Rainer
150
Custom Home Builder Montgomery
Texas - Magnolia, TX

Custom Home Builders in Montgomery, Texas haven't really had a problem because of the economy. It seems people are building like crazy here!

Aug 21, 2008 02:49 PM #10
Rainer
10,770
Artisan Custom Estates
Artisan Custom Estates - Alpharetta, GA

Thanks for the post and glad to hear things are going well in Montgomery!  We have seen an uptick in interest in our niche market in North Georgia, but it's more from folks who are kicking the tires for a 2009 project than folks who are interested in moving quickly

Aug 24, 2008 03:52 PM #11
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Rainer
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Artisan Custom Estates

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