I Still Have Hope
QR Market Memo
“Fortunately for me, I have found a way through this. I guess tough times can either make or break anybody. So far, I am determined to do whatever I have to do. The real strength that I needed throughout these years of business survival had to come from within. Even now as economic news worsens and we face a very long journey before us, inner motivation is an absolute. Without it we have no hope. There it is. No matter what else drops away, I still have hope. As long as hope remains I can keep going.”

Stronger Lure for Prospective Home Buyers
Wall Street Journal
“Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.”

Giving thanks is not just for Thanksgiving!
Housing Zone
“That fact that you are still in the game is really amazing. We conduct business completely different than what we did in 2005, we take nothing for granted, and we have learned new skills and attitudes that will be the platform for our future success when our market returns to 2001 levels.”

According to NAHB.org, “The three indicators are employment growth (from BLS), house price growth (from Freddie Mac) and single family housing growth (from Census).  Each metro area (out of roughly 360 defined MSAs) must see improvement in all three indicators at least six months after their respective troughs before being categorized as improving.”

In September, just 12 markets passed the IMI criterion. In October, that number is up to 23 markets, but it’s important to point out states like Iowa, Illinois and South Carolina were not represented the first time round.

Which markets met the IMI standard in October? Alexandria, La.; Amarillo, Texas Anchorage, Alaska; Bismarck, N.D.; Casper, Wyo.; Fairbanks, Alaska; Fayetteville, N.C.; Houma, La.; Iowa City, Iowa; Jonesboro, Ark.; Kankakee, Ill.; McAllen, Texas; Midland, Texas; New Orleans; Odessa, Texas; Pine Bluff, Ark.; Pittsburgh; Sherman, Texas; Sumter, S.C.; Waco, Texas; Waterloo, Iowa; Wichita Falls, Texas and Winston-Salem, N.C.

David Crowe, chief economist for the NAHB, is quick to manage expectations. The month-to-month growth is encouraging, but unlikely to sustain. However, Croew said the likelihood the list of improving markets will continue to grow is “pretty high.”

Prequalifying Clients
Qualified Remodeler
“There is an old saying that if you don’t know where you’re going, any road will take you there. Similarly, in the remodeling industry, if you don’t know what your business focus is, any client will do. In today’s marketplace, where finding remodeling jobs can be a struggle, accepting clients you avoided in the past may be a necessary evil. However, a group of remodeling contractors in Cincinnati stresses the importance of staying true to your business and yourself.”

Apple’s Visionary Redefined Digital Age
New York Times
Use an iPad on the jobsite as many builders do? Take a moment to remember the driving creative force of Apple.

States With the Highest (and Lowest) Homeownership
24/7 Wall St.
“The dream of owning a home has become increasingly unattainable for many Americans, and the situation is not likely to improve soon, as the collapse of the housing market and the recession continue to take their toll. That is the disturbing conclusion to be drawn from the US Census Bureau’s newly released report ‘Housing Characteristics: 2010,’ an overview of the national home market at the end of the last decade. One of the highlights of the report is a list of the states that have the highest and lowest percentage of homes occupied by their owners. 24/7 Wall St.’s review of the data found that homeownership rates were high in thinly populated states and those with low home prices, while homeownership was low in states with expensive homes and large cities.”

9 tricks for creating a super model
HousingZone.com
“Believe it or not, if you look closely, you’ll see that some of the world’s most enduring super models have a few things in common with successful model homes.”

Summering in Style in Scandinavia
Wall Street Journal
“From the spectacular setting of Max Hansson’s seaside estate to secluded clearings in the middle of the forest, Gotland has become a prime destination for Sweden’s high-end second-home buyers and builders, who want to personalize their vacation settings.”

The New Customer Isn’t Different
Qualified Remodeler
“Everywhere you turn these days there is advice about how to handle the new (post-recession) customer. Be on your toes, on your knees, between your ears. But are they—the same folks you did business with before the recession—really that different? I wish the proponents of this new, improved customer handling would explain how and, more importantly, why these same people are somehow different now.”

But it’s not the only thing. Over at Boyce on Building, Boyce Thompson of BUILDER Magazine offers a few other ideas.

There’s the problem of too much choice. It’s no secret that it is a buyer’s market out there, but maybe there’s just too much available to make a decision. With a seemingly limitless supply of houses (and more becoming available every day), who can blame potential buyers for paralysis?

Thompson also brings up the green factor. Yes, it is something that is very important to homebuyers nowadays, but there is the struggle between offering basic, well-known things like ENERGY STAR appliances and offering green options that are unusual and really differentiate a home from others on the market.

And then there’s the uncertainty — will it get worse? If it does (the thought goes), there’s no need to buy now. After all, it would be nice to spend as little as possible. But if the market keeps getting worse, buying in a possibly declining neighborhood isn’t a prospect most potential homebuyers relish.

What do you think? Do you see these thoughts displayed with your clients, friends and neighbors? How should builders respond to these attitudes?

• Outdoor living areas: Are you paying more attention to things like porches and patios? An outdoor kitchen (from simple to grand) and a fireplace can add a whole new dimension for homeowners. Who doesn’t love an extra room in the great outdoors?
• Green features: Green is hot right now, but homeowners are demanding practical things like energy efficient windows and water and electricity-saving appliances. Showing that products meet federal ENERGY STAR standards will be important in attracting and informing consumers.
• Open kitchens: If the hearth is the heart of the home, it makes sense people want to be in it. Open kitchens allow that cozy feeling while allowing the cook some additional space to maneuver.
• Smaller homes: To go along with the green theme, smaller homes are easier to heat and cool, easier to clean and discourage the mindless filling of rooms.

Do you see these trends when you are building and remodeling?

Home prices: ‘Double-dip’ confirmed
CNN Money
“Home prices hit another new low in the first quarter, down 5.1% from a year ago to levels not reached since 2002. It was the third straight quarterly drop for the S&P/Case-Shiller national home price index, which was released Tuesday.”

Hitting below the belt
Daily 5 Remodel
Editor Leah Thayer asks: “All’s fair in business except — well, what is unfair? Describe what constitutes hitting below the belt for you, and your response if this has happened to you.” Interesting discussion unfolds in the comments section.

Net-Zero Does Not Live by Design Alone: The Human Factor
BuildingGreen.com
“If you build it, they will plug. They will plug in drip coffee makers, halogen lamps, personal DVD players, aquariums, space heaters, and maybe even hair dryers. They will leave computers, lights, and printers on all night. How many of them will it take to screw in incandescent light bulbs before we realize that net-zero is not just about design?”

The New Luxury
Marketing Home Products
“A significant finding in recent months concerns the effect the economic downturn has had on the wealthiest Americans and their purchases in the luxury category. Spending by wealthy Americans (those with annual household incomes above $200,000) has returned to pre-recession levels while spending by middle and low income Americans is still low. [...] But the rich aren’t spending their money in the same way they used to. A study by the Harrison Group found that the shopping behaviors of the affluent have become more price conscious. Even though many of these people didn’t lose their home or job during the recession, they saw how others were affected around them and have changed their habits because of it.”

7 Secrets to Improve Your Sales to Women Homeowners
Qualified Remodeler
“The Harvard Business Review called this the ‘female economy’ (September 2009). Time magazine called it the ‘sheconomy’ (Nov. 22, 2010). Whatever you call it, women are in a stronger position than ever to influence household spending. Selling to women is not the same as selling to men, but if you use the techniques that work well with women, you won’t hurt your sales to men.”

Foreclosures Are Down, but Not for Long
BUILDER
“Foreclosure activity fell dramatically in the first quarter of 2011, dropping 15% from the previous quarter and plunging 27% from where it stood in the first quarter of 2010. One in every 191 U.S. housing units received a filing during the period—the lowest level the nation has seen in three years. Unfortunately, these overly optimistic numbers won’t last long.”

Job-Site Dogs
Fine Homebuilding
“Start your week with a ‘woof’–visit the job-site dog gallery. Better yet, upload photos of your job-site pal.”

Kicking the Contractor
Daily 5 Remodel
“Countless other mass-market media stories, including this article in the Wall Street Journal, also cite contractors’ willingness to slash their prices, citing anecdotal reporting as well as results of an Angie’s List survey. And that rubs many remodelers the wrong way.”

Energy Labels a Powerful Tool for New Homes and Retrofits
EcoHome Magazine
“In an effort to aid consumers and contractors, Earth Advantage created its own labeling system, Energy Performance Score (EPS), which it piloted across 300 homes in 2008 and launched formally in 2010. Under the program, residential buildings score on a scale of 0 to 200 based on millions of BTUs used per year, with 0 being net-zero. According to Duane Woik, green building consultant for Earth Advantage and state director with the Oregon HBA, EPS allows pros to build at their comfort level while providing homebuyers with a quantifiable and easy-to-understand measurement.”

Low cost, high style
Builder Online
“Few builders had the time or the inclination to pinch pennies during the housing boom. … Now that profit margins have narrowed and buyer equity has shriveled, those in the business who can fashion design gold out of lead have a talent that everyone wants. We touched base with a handful of recessionary alchemists and asked them to share some of their tricks of the trade.”

7 down payment assistance programs that make home buying easier
Custom Builder
“Mortgage rates are low and home prices aren’t showing signs of going up anytime soon. And now state and local governments are stepping in to help many buyers with their down payments.”

Unlawful Marketing & Sales Practices
Replacement Contractor
“Thirty companies in the state of Washington received a letter from the assistant attorney general with the above heading in the last year. Seven of the companies and one manufacturer signed consent decrees. Some are left with severe damage to their reputation and staggering legal bills.”

Bankrupt Projects Are Springing Back to Life
Bloomberg BusinessWeek
“Faced with record low demand, builders are trying to boost margins and revenue by pulling unfinished projects out of mothballs. They are buying lots at less than half their original price from lenders eager to move distressed construction loans off their books. They’re also benefiting from cheap land and falling construction and labor costs as they try to lure buyers with prices that, in some neighborhoods, are little more than the cost of a foreclosed home.”