Is the end of the Great Recession near? Let’s look at the signs. National employment statistics are stabilizing… the unemployment rate is improving in MI… jobs in manufacturing are ramping up … new battery jobs are being announced… the development of off-shore windmills is a hot topic. These are all are positive signs.
But what about the housing industry? Consider that only two residential subdivisions were started in 2008, 2009, and most likely 2010 – in all of Kent, Ottawa and Muskegon. The housing market is bottoming out. New home inventory is at historically low levels. New home prices are below 2000 prices – with lot prices well below replacement costs.
What does this mean beyond the obvious great housing deal?
• Historically low prices are not sustainable! Eventually home sites are going to become scarcer prompting either rising prices or the construction of new developments at higher prices due to actual replacement costs.
• Although you may think you don’t qualify for the government bailout, consider that just about everyone is receiving a lower interest rate on their mortgage because the government is actively keeping rates down.
• At some point, as the market improves, members of the building industry – the subs of subs, vendors and contractors – are going to begin looking to make profits again.
So what does this mean for you? Now is the time to buy! Preferably in a community that your family will enjoy living and growing in for decades to come. Prices are right, interest rates have never been better, and there is a great selection of homes in premium locations. Conditions like these will most likely never happen again! It’s time to go new home shopping!
-Michael L. Bosgraaf
