Special offer

At Least I'm Not A Builder!

By
Managing Real Estate Broker with NextHome Experience 17050

For a brief time during the “run up” my husband and I considered buying a lot and building a spec home. We had recently had a successful investment experience and were feeling sassy and confident (ok that was me, my husband was willing to appease me) in the effort to create our own reality.

Of course we didn’t know that the run-up would be shut down by such a stomach flipping (think roller coaster) drop which  happened (in my area anyway) at the end of July 2007.

Yes. I know the month. Exactly.

It was as if someone threw a switch. Home Sales….OFF

I’m an eternal optimist though and strive to find the positive in any situation. So it was this week as I found myself being extremely grateful that we did not pursue that building project.

‘Cause I sure wouldn’t want to be a builder right now.

This week the Commerce department announced housing starts for the month of January were the lowest since 1959.  That report followed on the heels of a presentation at the Olympia Master Builder’s meeting where the president of New Home Trends, Inc of Bothell delivered the sobering news that many of them may not be in business by the end of the year.

.the one statement that got everyone’s attention was a prediction that the slower real estate market will result in 70 percent of small builders in the region going out of business by the end of 2009

 

Read more

 

 

 Find out what your King Co home is worth.

Find My King Co Dream Home!

SouthEast King County Bank Owned Featured Listings

 

  Colleen Fischesser is the Broker/Owner of RE/MAX Select in Maple Valley, WA. She has been successfully selling and marketing properties all over South King & North Pierce counties since 1990 but specializes in the Maple Valley Washington area. She may be contacted directly at: 425-432-5400

 

Copyright 2009, All Rights Reserved Colleen Fischesser

Posted by

 

Thanks for reading!

 

 

 


 

 ____________________________________________________________________________________________________________________

Colleen Fischesser REMAX

 Serving the beautiful Pacific Northwest Since 1990!

 

Colleen M. Fischesser, Managing Broker

RE/MAX Advantage, L.C.

Serving Seattle and the Chelan Valley

206-491-3819  (Cell/Text Seattle)

509-699-1611 (Cell/Text Chelan)

 

 www.ColleenFish.com

www.ChelanPropertyShop.com

www.NWPropertyShop.com 

 ___________________________________________________________________________________________

This is a personal blog based on my opinion and experience in the real estate industry. All content is provided for informational purposes and should not be construed as legal, financial or tax advice. Laws, industry practice standards and procedures vary by state. Readers are advised to contact appropriate third parties for professional advice when needed. Any questions please let me know!

 

Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Colleen - We same the same switch get turned off here, only it was 9 months earlier... 

Feb 20, 2009 03:01 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

I spoke with a builder (high-end) last week and his story was not a pretty one--slashing the price by a million dollars still did not generate a showing--his debt service amount is staggering.

 

Feb 20, 2009 03:15 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

It is indeed sad.  Builders are choking on land, many can't finance materials and buyers can't get financing. 

I love new home sales.  All I can say now is, I miss new home sales. 

Oh well. 

Feb 20, 2009 10:01 PM
Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best

Things are really tough all over.  I look forward to a day when we will be saying, "Gees, do you remember 2008 through 2009?  It was brutal but we made it!" 

Feb 20, 2009 11:40 PM
Colleen Fischesser Northwest Property Shop
NextHome Experience - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!

I thought the 70% stat was pretty staggering! I know there are many real estate agents leaving the industry in Washington state, but I don't think it's anywhere near 70%!!

Feb 21, 2009 02:19 AM
Scott Cowan
RE/MAX Professionals - Olympia, WA

Colleen- 70% sound so grim to me. I really wonder how they came up with a number that dramatic? The builders I know are all living to fight another day. They have scaled down their new construction projects (mothballed) and are working on remodeling projects. Many of them are as busy with remodeling as they were building. One builder I know has turned his new construction properties into rentals and is making ends meet that way.

I too look forward to a market where solid well priced homes sell....

Best,

Scott

Feb 21, 2009 03:36 AM
Elena Martinovici
MY HOME GROUP 602-321-1273 - Phoenix, AZ
Associate Broker- Phoenix , Arizona

Collen,

Same happened here. Only it was at end of 2006. Now I am glad I got out of an investment that was over 1 million.... was supposed to buy with 1% negative amortization... got out of it and thank my Lucky stars( those homes are now worth less than 500K)  What was I thinking? I would have told my clients how risky that financing is and ask them if they are sure of what they are doing. However I personally had success during the " run up" and was feeling too bold. I still have 3 other properties. 2 Are still worth something have have equity left.  However one is proof of "don't ever buy a home at a lottery or when everyone else is buying" ....

 

 

Feb 22, 2009 04:20 AM
Elena Martinovici
MY HOME GROUP 602-321-1273 - Phoenix, AZ
Associate Broker- Phoenix , Arizona

How is the market in pierce county doing now? Have you seen a lot of decrease in prices this year ? are the # of foreclosures going up? I Have an investment there with a local builder/ that is now doing home remodeling projects and wandering if we're going to turn a profit .

Thank you

Feb 22, 2009 04:23 AM