Is there a benefit to the Owner as bids fall below cost? Will the contractor be able to complete the project for the contracted price?
What a difference a year makes. In the second quarter of 2008, construction starts had moved slightly off the record-run rate of the previous three years. The economic bloodletting set off by the sub-prime meltdown did not really spill over into construction until the second half of the year.
With the highs and lows of the national economy – Big Sky continues to grow up as a town & community.
For a couple of decades after Chet Huntley opened Big Sky Resort in 1973, the Southwest Montana ski destination was an odd anomaly – not quite developed enough to compete with the Vails and Aspens of the world, not quite big enough and charming enough to have a strong sense of place, and not quite close enough to anything to be a likely spot for intensive real estate development.
Inevitably as construction and land costs bottom out – new home sales have started rising throughout the country.
The term “buyer’s market” has been tossed around plenty in recent months. But most home buyers don’t grasp the full meaning of the term until they get ready to shop.
After a rough second half in 2008 and a devastating spring, the region’s housing market has made some gradual improvements in recent months. But while sales are increasing slightly, the selling price of homes remains as low as most real estate agents can recall.
“They are still really low, which means it’s a good time to buy. I don’t think the prices have really moved upwards yet. I’m not sure when they’re going to,” said Richard Spencer, real estate agent with Ron Spencer Real Estate.
Long overdue is the standardization for permits, contracts, inspections and licensing in the Montana Building Industry. The new contract laws are a small step forward in a very needed update.
A new Montana law that requires contracts between builders and customers goes into effect October 1, 2009. The law, which looks to add a bit of standardization to the building process, will benefit both the consumer and the reputation of the building industry.
Over the last several years, I have taken every opportunity to attend classes from Charles Shinn when I hear he will be in Northwest lecturing. When Charles talks – people listen. Take a moment to read a recently published article on the next wave of buyers.
Every time we have had a housing cycle, the industry has had to change. I have always said, the buyer coming out of a downturn is different from the buyer going in, and this is definitely the case this time. The housing product that was in demand prior to the collapse of the market is not what the new customer wants during the recovery. The longer and deeper the housing cycle is, the greater the change in customer preferences.
For the last 40 years, we have been following the baby boomers through their life cycle changes with our housing products. Coming out of this cycle, the baby boomers are moving into the downsizing stage of their lives. However, they will not return to the market in any significant number until the housing prices at least stabilize. They are over housed and can postpone the buying decision.
The next population group, the Generation X, now in the prime home buying age of 28 to 44 years old, is only two-thirds the size of the baby boomer generation. The generational gap will contribute to a significant decrease in demand of the most popular housing product that was available prior to the recession.
“In lieu of a 7,000-square-foot palace that antes up to the neighbors, they’re planning a house less than half that size with energy-efficient features, panelized construction to reduce waste, and a variety of flexible, multipurpose spaces. One of its four bedrooms will double as a guest room…”
It’s the scapegoat of the housing bust, and that’s not all. From accusations of ostentatious overconsumption to environmental indifference, the McMansion has taken some brutal hits in the recession economy. Are those blows lethal enough to send starter castles to their grave? Or will they live to see another boom?