Sunday, May 28, 2006
US New Housing Sales UP 4.9%!
This month the US Dept of Commerce released data that shocked all of the housing analysts.
New US Housing sales were up 4.9%.
Granted many naysayers out there have been publishing data in the press that there is a "cooling" of the real estate market, but the reality is that as population climbs, demand on real estate is increased.
Cape Coral real estate offers an attractive investment and new homebuying opportunity.
New US Housing sales were up 4.9%.
Granted many naysayers out there have been publishing data in the press that there is a "cooling" of the real estate market, but the reality is that as population climbs, demand on real estate is increased.
Cape Coral real estate offers an attractive investment and new homebuying opportunity.
Monday, May 08, 2006
Cape Coral real estate market
Note: this is an interesting story pulled from The News-Press yesterday. Bottom line, if you're looking to buy a pre-construction home, it will take more than two years (minimum) until it receives a COO. Think about buying new construction Florida real estate today before prices rise again...read on...
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Frank D'alessandro: Market Watch
Builders Affect Market
Originally published on May 07, 2006
Trends in the construction industry have a profound impact on the real estate market. Demand fueled by the Southwest Florida housing boom and Gulf shore storm damage are resulting in ongoing shortages and soaring costs for builders.
The threat of another busy hurricane season looms on the horizon, and with that may come more shortages. Residential and commercial contractors are competing for scarce building materials and skilled labor.
"There is still a shortage of construction materials," said Michael Reitmann, executive vice president of the Lee Building Industry Association.
"The shortages are basically for cement, roofing material, and anything petroleum-based. In certain areas there are problems getting drywall and steel."
"New delivery times for drywall have been extended quite a bit," said Gary Aubuchon, president of Aubuchon Homes Inc., a custom homebuilder. As the scarcity of building materials becomes more prevalent, subcontractors who order supplies such as drywall may find themselves more limited by allocations. For example, the distributor will only sell, or allocate, a certain number of drywall sheets per month to a customer. "You could have a job just sitting there, waiting for the drywall," Aubuchon said.
"There are major shortages and I think it's going to continue," Reitmann said. "You also have to look at the global picture and the rebuilding of the Gulf Coast of New Orleans and Mississippi."
And with the short supply, prices have risen sharply. "We were hoping to see a leveling off, but the costs of labor and materials have continued to rise," Aubuchon said. "Also look at what gas prices are doing. That affects the whole distribution chain."
The situation may continue to worsen unless supply levels increase. "In the long term, there may be more plants to manufacture drywall and roofing tiles, but that takes years," Aubuchon said. "In the short term, the best we can hope for is that we come through the hurricane season unscathed."
According to Reitmann, there was a downturn of 12 percent on building starts compared to a year ago, and the supply of skilled labor is still continually an issue. His association is working with schools for long-term planning, such as technical institutes that are going to focus on construction skills and training.
For more insight on construction trends, Aubuchon will be appearing on the "Market Watch" TV program this week, airing at 7 p.m. Tuesday and at 8 p.m. Thursday on Comcast 35 and at 5 p.m. next Sunday on Time Warner and Comcast Channel 8.
— Frank D'Alessandro is a real estate broker with D'Alessandro & Woodyard Inc., Commercial Realtors.
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Frank D'alessandro: Market Watch
Builders Affect Market
Originally published on May 07, 2006
Trends in the construction industry have a profound impact on the real estate market. Demand fueled by the Southwest Florida housing boom and Gulf shore storm damage are resulting in ongoing shortages and soaring costs for builders.
The threat of another busy hurricane season looms on the horizon, and with that may come more shortages. Residential and commercial contractors are competing for scarce building materials and skilled labor.
"There is still a shortage of construction materials," said Michael Reitmann, executive vice president of the Lee Building Industry Association.
"The shortages are basically for cement, roofing material, and anything petroleum-based. In certain areas there are problems getting drywall and steel."
"New delivery times for drywall have been extended quite a bit," said Gary Aubuchon, president of Aubuchon Homes Inc., a custom homebuilder. As the scarcity of building materials becomes more prevalent, subcontractors who order supplies such as drywall may find themselves more limited by allocations. For example, the distributor will only sell, or allocate, a certain number of drywall sheets per month to a customer. "You could have a job just sitting there, waiting for the drywall," Aubuchon said.
"There are major shortages and I think it's going to continue," Reitmann said. "You also have to look at the global picture and the rebuilding of the Gulf Coast of New Orleans and Mississippi."
And with the short supply, prices have risen sharply. "We were hoping to see a leveling off, but the costs of labor and materials have continued to rise," Aubuchon said. "Also look at what gas prices are doing. That affects the whole distribution chain."
The situation may continue to worsen unless supply levels increase. "In the long term, there may be more plants to manufacture drywall and roofing tiles, but that takes years," Aubuchon said. "In the short term, the best we can hope for is that we come through the hurricane season unscathed."
According to Reitmann, there was a downturn of 12 percent on building starts compared to a year ago, and the supply of skilled labor is still continually an issue. His association is working with schools for long-term planning, such as technical institutes that are going to focus on construction skills and training.
For more insight on construction trends, Aubuchon will be appearing on the "Market Watch" TV program this week, airing at 7 p.m. Tuesday and at 8 p.m. Thursday on Comcast 35 and at 5 p.m. next Sunday on Time Warner and Comcast Channel 8.
— Frank D'Alessandro is a real estate broker with D'Alessandro & Woodyard Inc., Commercial Realtors.
