I just finished a 1200 sq foot addition last week. This past week I started about a 2000 sq ft addtion. I’ve got three more good sized additions on the schedule after this one. And not a single new construction house frame on the books.
Weird.
I’m not complaining, in fact I’m enjoying it. But I’m wondering if anyone else is experienceing the same thing? Particularly in the Northeast?
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Replies
Word out here is the new construction is slowing a bit. We have been slow past 60 days no new starts. But were thinking its going to pick-up in the next month. Hope the intrest rates & price of fuel stays stable & we should be good.
the increase of retro, remodel and add ons generally says that new construction purchases have leveled off or the market is nearing saturation of new or the money for "all new" isn't there...
seems to be the same way here...
Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming
WOW!!! What a Ride!
Forget the primal scream, just ROAR!!!
Right out of my latest edition of PM magazine
Construction Employment Rises NationallyThe Bureau of Labor Statistics (BLS) reported that construction employment edged up 7,000 to a record 7.5 million, following gains of 44,000 in January and 37,000 in February. For the past 12 months, overall construction employment increased 311,000 (4.3%): residential specialty trade contractors, 6%; residential and nonresidential building, 4% each; and nonresidential specialty trade contractors, 2%. The Institute for Supply Management's March survey of purchasing executives listed eight items in short supply - all construction-related items. Items that were up in price included: aluminum products/wire, concrete/ready mix, copper products, diesel fuel, freight/shipping costs, lumber, and steel products. Do you look to the government for an entitlement, or to GOD for empowerment. BDW
Was talking to a good friend yesterday who is a sheet goods broker. He says he hasn't seen "it" (by "it", I presume he's refering to sales of rail car loads of plywood/OSB, etc.) this bad in 20 yrs. The slip in new starts is clearly evident (at least around here in southern NH) and he's predicting that things are really going to tank most everywhere else in the near future.
hopefully that will allow OSB pricing to plummet.
Yeah, that was my first reaction, prices would come down, but there's not a huge inventory either so he's thinking costs will be static for awhile, maybe even rise a bit as we're going to start seeing some bumps upward due to rising shipping costs.
so was this for new construction only or the entire picture???
PM as in Popular Mechanics???Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming<!----><!----><!---->
WOW!!! What a Ride!<!----><!---->
Forget the primal scream, just ROAR!!!
All construction
PM = Plumbing/Mechanical
I have another article I'm trying to find it has more of a breakdown of res-- com ----ind new & remodelDo you look to the government for an entitlement, or to GOD for empowerment. BDW
that other article would be better...
that 1st one was pretty cluttered...Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming<!----><!----><!---->
WOW!!! What a Ride!<!----><!---->
Forget the primal scream, just ROAR!!!
Houses on the market are way up. Prices are up as well again. Reno work and additions are up. New homes are a bit slower. Might have something to do with taxes being that the mortgage rates are also going up so it makes more sense to remodel than build new at his point.
I just refinanced and took out some more loans before the rates go up yet even more because its still at a decent rate. One can take out loans...keep the money in a money market or whatever safely and only pay about 2%. Soooo...it makes sense to invest in reno work IMO. The payoff down the line should be really good especially for work on our own homes if one plans to sell within a few years or so.
If Blodgett says, Tipi tipi tipi it must be so!
TipiFest 06~~> Send me your email addy for a Paypal invoice to the greatest show on earth~~>[email protected]
Speaking of which.... do you guys have any plans on selling your place once you're done? I'm guessing that, like me, you don't. A lot of people assume that as soon as I'm done with my place I'm putting it on the market. No way Jose. I built this one for us. What about you guys?View Image
Well the plan was to sell as was the house before this (attachments enclosed) one but we're really digging this house a lot so it looks like its a keeper. At least for now. We'll have to see if we can afford to stay longer than expected. Keeping my fingers crossed as to what the taxes will end up being after we get the final and the CO in another month. On just some sh!d houses around here the takes are upward of twenty grand a year on less than an acre. The house I did before this one that we sold about 3 1/2 years ago had taxes we paid of about eleven grand. By the time I was done the new owners are now paying 18+ grand on less than a half acre...ouch!
So on two acres here I'm praying the additions don't add too much more.
Then theres paying the loans back (but no mortgage,,,,same thing).
Looks like I'll have to go back to working for a-holes again...ugh,,,echhh. I'll just have to weigh out if thats worth it for me.
Keep house
Work for A-holes
Keep house
Find people to do jobs for that ain't a-holes.
ugh
Doing these houses the way I've been doing them makes me "really" good money...a whole lot more than working for a-holes. I never have to deal with anyone. Its sooooooooooo nice!!!!!!! The living conditions can be pretty horiffic in the beginning stages but its gotten better with each house.
Too bad I don't have enough dough to keep one and do another.
I know...UOPM.
Probably stayin'! Just need to figure out how to reconfigure my business and be able to focus on specific jobs I can call a speciality...rather than the usual laundry list.
I have some good ideas so we shall see....
Later
a...
If Blodgett says, Tipi tipi tipi it must be so!
TipiFest 06~~> Send me your email addy for a Paypal invoice to the greatest show on earth~~>[email protected]
Thats too bad.
Tim
so what profit points can U focus on?
I know U frame ...
windows?
siding ...
etc.
If U already set windows ... how about supplying them?
mark up and such.
If the tides are turning from new const to remodeling ... gotta get ahead of the curve.
You are good ... no reason U can't make money in either market.
remodeling should have a higher profit margin than new const anyways ...
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
I was thinking the same thing when I read it.
He will survive with all his ambition and energy.
I started out doing the new thing and then had to take the old things . Now I realize I shoulda done the old thing the whole time . Hands down. But first ya gotta know it and that takes awhile .
Tim
Last Thanksgiving we traveled to PA and Upstate NY to visit relatives. I was shocked at how few new, under construction homes I saw. Probably 2 or 3. Where I live I'll bet there are 10 new neighborhoods within 5 miles.