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The benefits of building in a down market
We all know there are plenty of negatives but how about some of the positives:

For the last few years I constantly struggled to get homes built as the market boomed.  Valley County Idaho and more specifically Tamarack is an area where labor is short and unreliable.  Now that things are not proceeding at a breakneck pace I have noticed some specific benefits.

1) Lower costs.  I just bid a concrete job last week that was 25% under budget.  The other part of the lower cost equation is that contractors have more people to "throw" at your jobs as there is not as much going on.  The interesting observation that I have noticed is some contractors are going out of business, others are lowering prices, but some are keeping their prices where they were 2 years ago.  I think these are the people that would rather weather the storm with a little less business and return back to higher prices when the market returns.

2) Consumers are not in a hurry . . . . say what?  How is this a good thing?  It is my belief that the current market status as a time for education. Now is the time, I feel, to bring a new concept to the consumer, when they are not in a frenzy to buy, and might make a hurried decision. Today’s home buyer is smarter and more thoughtful with their spending, and more conscious of how their money is spent. They want a quality home, but without emptying their wallet. And they are interested in having a home that promotes well-being for their families and that doesn’t compromise our environment.

3) It weeds out those that don't belong.  We all heard the stories that Idaho has more Realtors than properties for sale, and seen contractors that popped up overnight.  What I am seeing is those companies/individuals that were doing less than stellar work or providing less than stellar service are slowly going out of business.  I feel that in the long term this will mean that upon the rebound those of us that take care of our customers and do quality work will have less competition.

Off my soapbox. . . .

Nic Stover

Posted by Nic Stover at 11/7/2007 2:28:00 PM
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