Local homebuilders agree – the housing industry is in recovery. According to Gene Stumpf III, president of the Home Builders Association of St. Louis & Eastern Missouri, “Single-family housing permits for the first month of 2012 were up 50% compared to last year.” When considering the increase in builder confidence, he noted, “The consistency suggests that the housing market is moving toward more sustainable growth.”
DH Custom Homes couldn’t agree more! We’ve seen a big increase in activity since last summer. Even more encouraging, things are continuing to pick up as we move into 2012. Since July 2011, DH has sold a total of 12 homes, with 5 of those since January 1.
The best part – we have SEVEN more starts booked within the next three months. The last time DH saw that many starts was early 2007.
With the market upswing, we’re also seeing a difference in what shoppers are looking for. It’s no longer just a search for the ultimate bargain. Buyers are once again looking to build a nice home, tailored to their wants and needs. They’re making smart decisions though – willing to compromise on their wish list in order to balance staying within budget and meeting their needs.
Another change in 2012 buyers is found within the contract process. More buyers are not requiring contingent sales. In the second half of 2011 we sold seven homes. Four of those seven were contingent on the sale of the buyer’s existing home. Thankfully, all were able to sell and firm up. Of the five homes already sold in 2012, just two were contingent and one has already sold and is firming up. It’s certainly encouraging to see buyers being able to sell their homes quickly or be more confident to move forward with the process without a house-sale contingency.
This truly has been a great time to buy a home. Because of the availability of labor, average construction build time is just 4½ months. A quick build time means getting buyers into their homes quickly, allowing them to start settling in and making it their own. The mild winter and early arrival of warm spring weather also worked to our advantage. We were able lay sod all winter long!
Another segment of our business that’s seen an increase is remodeling. More people are making improvements to their homes and moving forward with planned projects that had been put on hold.
DH Custom Homes, and the local market in general, is experiencing a promising upswing. We’re optimistic about where 2012 will take us. It’s such a rewarding process to be a part of building beautiful custom homes for our valued customers.
