We have been studying a trend of new home buyers in the US in light of this latest housing boom. And how we should adjust our strategies to deal with it. Last year we saw 5.56 million sales of existing homes and we all know that the number of brand new homes was substantial to say the least. This incredible surge in new housing starts was due primarily to mortgage rates at all-time historical lows. And the incredible move-in deals, for instance loans with less than 1-3% down payments. 20% of our population took advantage of this by re-financing, remodeling, moving or buying a new home. 43 million Americans moved between 1999 and 2000, this trend continued even to today's date we see areas of hyper growth. On both sides of the country and yes, some in the middle too, places like; Dallas, Denver, Kansas City, Oklahoma, Nashville and Phoenix suburb areas all saw strong growth in 2003 and much of this is continuing as expected into 2004. In 1999 thru 2000 33% of renters moved and 9% of homeowners.
What does all this mean to service companies? Well it means the discretionary expenditures for home related items and services is about $6,500.00 on average. First time home-buyers spent $2500.00 less on upgrades and improvements. This of course is important to landscaping companies who deal with residential properties and consumers. We noticed it in our group of service companies, which specialize in those sectors: Window Wash Guys; The Deck Wash Guys; The Concrete Wash Guys. But were heard the same thing from pool builders, furniture sales and BBQ sales. Another interesting trend is that new homeowners are 35 percent more likely to buy a one or more new cars, at least that is what the latest surveys are showing for the years from 1999 to the current if they have purchased a new home.
We know in the carwash industry that our industry tracks new automobile sales for three years. This is because people with new cars tend to be more at attached to those automobiles (not like Jay-Lo and her latest boyfriends or Super Star Woman Teen idol and singer with her new husband for 23 hours in Vegas) as it is an extension of their personalities, because of this relationship with the automobile those owners are more likely to take a really good care of it while it is still new. As a matter of fact at the Car Wash Guys http://www.CarWashGuys.com we have noticed that detailing inquiries for new cars outrank those for much older cars by a 5 to 1 margin. The same thing is true with new homes.
Companies like Lowes and Home Depot are showing incredible gains, Home Depot just announced it was going to build 175 new stores in the next three years spending over $1.6 billion to do it.
http://www.carwashguys.com/072302_3.shtml
Why is this happening? It is happening because the pie of overall customers has increased by over 25 percent since 1999. This means that 25 percent of Americans who previously did not own a home, and now do. This is a testament to the strength of the middle class as well as the trust in the security of the ongoing endeavors of a great civilization with a strong economy and strong central bank.
However, we have also noted a slight trend in the decrease of the total number of dollars being spent by those buying into new homes. We know why this is because, the average consumer is tapped out; they have blocked cars on zero-zero down and bought homes on one to three percent down. There were also 3 million U.S. citizens who had lost their jobs in the same time. Just because a past trend has translated into a sub-trend you your sector does not mean it is always guaranteed to play out that way as there are many other factors involved. It is a lot like predicting the weather; with so many variable sometimes you just cannot know and then there are regional anomalies in some areas which buck the first trend. Think on this.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
Ridgefield Connecticut, located near the New York border, is a... Read More
When is the best time to buy? When is the... Read More
Delaware, and the rest of the original British Colonies, has... Read More
First impressions count, buyers will have already formed an impression... Read More
Many folks dream of becoming real estate investors, but not... Read More
Making money with "fixer-uppers" isn't about repairing drywall or planting... Read More
We Sussex Countians are fortunate in many ways as we... Read More
I had a client who called saying that his bath... Read More
So you think you might like to buy an old... Read More
Fixing up houses to ready them for sale includes a... Read More
YEEHAW!!!!!! The south will rise again!! Can't you just imagine... Read More
The value of the real estate you own, whether it... Read More
Every year hundreds of thousands of foreign visitors travel to... Read More
The voluntary Model Green Home Building Guidelines are designed to... Read More
The UK has gone property TV crazy. There are now... Read More
Do you realize that you might be prevented from renting... Read More
These are real builder questions that I got from readers... Read More
Houses can have lots of problemsReal estate investing requires expertise... Read More
Almost anyone can become a rural property owner; if you... Read More
If you're thinking about selling your home perhaps the 'for... Read More
From the desk of Colm Dillon ... Author "Residential Development... Read More
According to the National Association of Realtors, For Sale By... Read More
Property Investing often requires creative strategies to make it successful.... Read More
GOLF GRABS BULGARIA!At the present time there are only three... Read More
There has been speculation in the media recently about the... Read More
Anyone interested in real estate should be able to talk... Read More
Opportunities to make big, quick profits in residential real estate... Read More
Successful real estate investing depends largely on a correct assessment... Read More
Advertising to the "Public"Every home seller likes to be assured... Read More
In our fast paced and frantic real estate market, buying... Read More
HOW TO SELL YOUR HOME FOR TOP DOLLAR1. Make your... Read More
Did you know that it's a proven fact that a... Read More
The Log home industry has matured these last many years,... Read More
Sellers need to keep their safety in mind when prospecting... Read More
Whether you list with an agent or sell on your... Read More
Do you want to sell your home right away? Don't... Read More
According to the National Association of Realtors, For Sale By... Read More
We all know that a home or property of any... Read More
Styles of houses vary across the country. From the New... Read More
Houses for sale by owner, also known as "FSBOs," are... Read More
The Florida housing market has attracted many foreigners to invest... Read More
Selling your home? Here are some suggestions to help you... Read More
With the recent release from the UK's biggest mortgage lender,... Read More
In today's tight housing market, many buyers are looking for... Read More
Estonia's reputation is growing within the property investment market. Rising... Read More
If you've just bought a house, you may be able... Read More
There are two sides to a feasibility study and in... Read More
The UK has gone property TV crazy. There are now... Read More
When is the best time to buy? When is the... Read More
As somone who has lived in both places, I can... Read More
Most of us don't talk about money, finances, credit, debt....Young... Read More
If you've followed any of the major survey agencies around... Read More
In a previous article we introduced you to the concept... Read More
Financial literacy is the means of empowering consumers to make... Read More
Yes, you want to sell your home and you want... Read More
A house properly priced is half sold. But there are... Read More
If you are considering buying a home or have spent... Read More
In the wake of Hurricane Katrina's wide path of destruction,... Read More
As soon as you decide to put your home on... Read More
Most people take the easy way out when selling their... Read More
Interested in investing somewhere other than your back yard?Management companies... Read More
Do strangers scare or intimidate you? If you're planning to... Read More
I have been a mortgage lender for many years and... Read More
Fixtures, related to real estate, are items that were originally... Read More
Real estate web design requires you to do things a... Read More
If you are investing in real estate you will face... Read More
Real Estate |