The good news is the election is over and it’s safe to watch television and listen to the radio again. In our state it seems like we have moved from the 2010 mid-term elections to the recall election and then to the 2012 elections. Like most people, we are tired of politics and would prefer to think about business instead. As you will read later on in this newsletter, markets are staying strong into the winter months. This is because demand has stayed strong due to good weather, plus Hurricane Sandy has had an impact. It will be interesting to see if this continues through the winter. Please be aware, we are being told that many manufacturers are planning price increases for the first of the year. They typically announce the exact date and the amount of the increase 30 days prior to its implementation. Please consult with your salesperson regarding any impact this may have on your proposals and projects going forward.
Housing After the Election
Obama’s re-election not only means a continuation of plans that have already been set in motion but the implementation of new initiatives as well. According to Builder Online, the following are major priorities projected for housing in the Obama Administration: making refinancing easy, reducing high-risk loans with mortgage regulations, and determining the fate of principal reductions and mortgage interest deductions.
Read the article for more details.
Cost of Framing Bounces Back
Prices of building materials experienced a minor dip in October but have already rebounded in November. Framing costs are 2.97% higher than the previous month and a significant 25% higher when compared to November 2011. This is the largest demand we’ve seen all year, with the exception of September, which showed a 27% increase in prices when compared to 2011. This further verifies the continued and overall upward trend in demand for building materials this year.
Industry Bears Growing Pains
Areas of the country where the market is starting to improve have already reported the aches of labor shortages, according to Builder Online. Homebuilders are struggling to find specialists and skilled trades contractors who have left the industry during the recession. While the impact is still uncertain, many homebuilders have reported an increase in the amount of time it takes to complete projects. Labor shortages started in the West and have spread cross-country to larger metropolitan areas but don’t seem to be a prevalent problem currently in the Northeast or Midwest.
