National Association of Home Builders (NAHB) President Brian Catalde said, "Builders realize that issues related to mortgage credit cost and availability have become more acute, filtering some prospective buyers out of the market and prompting others to delay their decision to purchase a new home. Builders are responding by trimming prices and stepping up non-price incentives to bolster sales and limit cancellations, although we're dealing in a difficult market environment."
NAHB Chief Economist David Seiders cited the subprime mortgage situation as being a part of the problem but said, "... the government-related parts of the mortgage market still are functioning well and the underlying economic fundamentals promise to remain solid for some time - providing support to the longer-run housing outlook. We now expect to see home sales return to an upward path by early next year and we expect housing starts to begin a gradual recovery process by mid-2008. From there, the market will have plenty of room to grow in 2009 and beyond."
However, we don't seem to be looking at the housing inventory that this crisis has created. Taking this into account, I would say it is time for contractors to open their eyes and see the full picture. Truth is...even in the unlikely event that the Chief Economist is correct on his timing, this mortgage crisis has change the housing market forever.
NOW... is the perfect time for all contractors who are feeling the heat from the housing bubble burst, to re-examine the way you are doing business. I know you are faced with the frustration of endless quotes and hand holding only to lose the customer to someone else who comes in with a low ball number.
JUST THINK...for one moment how powerful it would be if you spent some time now to discover exactly what motivates customers to buy at your price alone! There is a better way to solve your problems, expand your business, make more money, grab the best customers for yourself and work less stressful hours.
