{"id":4420,"date":"2008-09-14T17:58:09","date_gmt":"2008-09-15T00:58:09","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4420"},"modified":"2008-10-16T15:39:23","modified_gmt":"2008-10-16T22:39:23","slug":"if-you-are-a-home-builder-you-have-a-problem","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4420\/if-you-are-a-home-builder-you-have-a-problem\/","title":{"rendered":"If You Are A Home Builder – You Have A Problem"},"content":{"rendered":"

Cost Of Building Materials <\/strong>Likely To Rise <\/strong>Due To Hurricane Ike
\n<\/strong><\/p>\n

Builders of new homes have been dealing with sluggish sales from lack of buyer demand, and with the potential of nearly $20 billion in damage due to Hurricane Ike – the cost of building materials could easily make a bad situation much worse.<\/p>\n

Builders have not seen a reduction in material prices in spite of the slowing of construction over the last two years, due in part to reconstruction of the damage from Hurricanes Katrina and Rita. While some material costs have gone down, most have not – and this latest giant hurricane striking a major population center is undoubtedly going to push material costs up.<\/p>\n

In the last year, spikes in the price oil have not only driven up the cost of many materials – it has also driven up the cost of subcontract labor for which builders rely. As energy costs go up – so do the manufacturing and transportation costs associated with the materials builders need.<\/p>\n

To make it a trifecta, the number of recently-built home foreclosures is at an all-time high – thus giving new construction some serious competition, as home buyers can find some very nice, nearly new homes for much less than most new construction.<\/p>\n

When you bring all of these factors to bear, you can rest assured that new home builders are in for some rough waters ahead. Rising costs will raise their “break-even” point, thus making their efforts less profitable without a retail price increase – which the current market will not bear. Since profitability is already impossible for many builders – more of them are likely to fail.<\/p>\n

“It ain’t over ’til it’s over,” Yogi Berra once said. Once again, Yogi is right.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cost Of Building Materials Likely To Rise Due To Hurricane Ike Builders of new homes have been dealing with sluggish sales from lack of buyer demand, and with the potential of nearly $20 billion in damage due to Hurricane Ike – the cost of building materials could easily make a bad situation much worse. Builders […]<\/p>\n","protected":false},"author":13,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-4420","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4374,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4374\/mortgage-market-week-in-review-9\/","url_meta":{"origin":4420,"position":0},"title":"Mortgage Market Week in Review","author":"Tom Vanderwell","date":"September 12, 2008","format":false,"excerpt":"Well, it\u2019s Friday again, so it\u2019s time for another Mortgage Market Week in Review.\u00a0\u00a0 I\u2019m going to talk just a little about Fannie and Freddie and then deal with some of the other issues that are currently affecting the financial markets. First Fannie and Freddie: As EVERYONE knows by now,\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":363,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/363\/buying-a-new-built-home-how-much-is-your-agent-getting-paid\/","url_meta":{"origin":4420,"position":1},"title":"Buying a new-built home? How much is your agent getting paid?","author":"Greg Swann","date":"September 22, 2006","format":false,"excerpt":"This is me from this morning's Arizona Republic (permanent link). \u00a0Protect yourself from agent bonus fees by builders Are you buying a home? How much is your agent getting paid? If you're buying resale, the answer is probably 3 percent, and possibly even less, although there may be buyer's agent\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":361,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/361\/ask-the-broker-why-should-i-take-a-buyers-agent-along-to-buy-a-new-home\/","url_meta":{"origin":4420,"position":2},"title":"Ask the Broker: Why should I take a buyer’s agent along to buy a new home . . . ?","author":"Greg Swann","date":"September 21, 2006","format":false,"excerpt":"This question came at an appropriate time. My column in tomorrow's Arizona Republic deals with this topic:Last year it was so hard to buy a new home. We would have had to camp out in some builders' parking lots just to have a chance to be in a lottery to\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":258,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/258\/sleaze-versus-sleaze-we-didnt-get-this-awful-reputation-by-accident\/","url_meta":{"origin":4420,"position":3},"title":"Sleaze versus sleaze: We didn’t get this awful reputation by accident . . .","author":"Greg Swann","date":"August 28, 2006","format":false,"excerpt":"Give a glance to these excerpts from this article in today's Arizona Republic. There will be a quiz at the end. Sleaze:Home builders are spending big bucks and dishing out heaping helpings of hospitality during what has become the summer of love in the Phoenix new-home market. The objects of\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2219,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2219\/bossy-visionaries-portland-and-how-to-ram-green-down-the-throat-of-an-uncooperative-market\/","url_meta":{"origin":4420,"position":4},"title":"Bossy Visionaries, Portland, and how to ram “Green” down the throat of an uncooperative market","author":"Jeff Kempe","date":"November 13, 2007","format":false,"excerpt":"The Bossy Visionary guide to power: 1.\u00a0Sell a crisis.\u00a0 It can be real, it can be almost real, it can be imaginary, but sell it apocalyptically.\u00a0 Over-population\/global famine has been an especially popular one, Paul Erlich having predicted it every five years since 1968 (but this time he\u2019s serious!), following\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":725,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/725\/ask-the-broker-are-new-build-prices-negotiable\/","url_meta":{"origin":4420,"position":5},"title":"Ask the Broker: Are new build prices negotiable?","author":"Greg Swann","date":"December 1, 2006","format":false,"excerpt":"When purchasing a home or condo in a new development are the prices quoted firm or can the buyer negotiate the selling price with the broker? 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