I recently read an article called ˜Fast and Furious Real Estate Market Stabilizing Despite Inventory Shortage.’ For those of us in the housing industry this article comes as little surprise. Everyone here at Zeeland Lumber and Supply has felt the surge of new home starts and have seen the rebound that the market has taken over the last year. While this change has been a positive one, it offers a new set of challenges and opportunities. As we say in our organization, “these are better problems.”
In this article, Jim Harger outlines the rising costs of homes and the reduced amount of time that they are on the market. These two circumstances have led to a severe reduction in inventory on the market. This reduced inventory, I believe, has given people a reason to consider building a new home as opposed to buying a used home. Personally, I think this surge of new business is great. It shows that the consumer is confident in our economy.
While we have seen that the building market has improved, the home start information as reported last week showed a 9.9% reduction on an annualized basis from the previous month. This was mostly due to reduced starts on the multi-family front. This shows that the trend line up to “normalized” housing starts will not be a straight line and not necessarily a steep line. This shows that an increase in home starts may be not as steep of an increase and therefore manageable for us in the industry.
We have built up our business and added employees to meet your needs at Zeeland Lumber and Supply, Zeeland Truss and Components and Zeeland Contractor Services. As always, we appreciate your business and support. Thank you for your business.