I'm sure that most American's, and certainly myself included, have been thinking about their stock portfolios and the financial well being of their family. My wife and I have made recent adjustments to where we are buying groceries all the way down to the amount of activities that we are involved in, that require time and money. I have found myself filling-up gas at the stations that I see the best price at, and even spending time on Sunday's looking through the circulars - never really did that before.
Additionally, I know from my religious upbringing and my faith, that we need to be good stewards of our money. I believe that everything that I have is a gift from God, and I need to be smart with how I save my money and how I spend my money. I also believe that God knows what each one of us need, and because of our faith in him, he will provide those needs. I'm not trying to employ a religious influence on anyone, but this is what gives me peace and hope that despite all that is going on around us, everything is going to be alright.
With that being said, for those that are considering buying a new home, there are numerous reasons to buy, now. Interest rates are still very solid, with slight daily fluctuations taking place both up and down. The speculation in everything that I have read is that mortgage rates are still going to come down over the next six months, especially with the importance on the housing industry and how that drives our economy. There is not doubt that the uncertainty with the winner of the presidential election is playing havoc with the markets. Once the winner is declared within a month, the pundits are saying that a lot of this volatility is going to go away.
Next, building costs have stayed in-check for over a year. Our company decreased the pricing on our homes early this spring almost 4% across the board, since building costs had not risen, and in an effort to spur more sales for us. That was a good decision, and we have had a very solid spring and summer this year. Customers that are signing contracts this fall can still benefit from the price stability. In looking ahead, unfortunately it doesn't appear that there is any doubt that pricing will rise to some extent in early 2009, especially with the inflationary factors.
Lastly, in the articles that I have read, home appreciation is still taking place in our market. In NW Indiana, we never saw the double-digit increases in appreciation, and we haven't seen the double-digit decreases, either. Home appreciation is typically greater and faster with new construction, versus an existing home. Our local press and especially our national press wants us to know about all of the negative factors in the marketplace. While there are some to note, most of it is not the "doom and gloom" that they want us to subscribe to. Again, I feel the current political process that is taking place is influencing a lot of what we read in the newspapers and see on television.
I want our potential customers to feel good about their decision and excited, knowing that we will build an excellent home for them, with the details and finishes that they want, in a very timely manner - five to six months.