Partner Article

Take Advantage of the Recovering Housing Market

There are signs the housing market is slowly recovering from the effects of the 2008 recession. While the economic growth of home prices is far slower than economists had hoped for, the S&P/Case Shiller index of home prices is expected to rise by one percent this year. While that rate is far below inflation, it will be the first time the housing market has added to economic growth since 2005.

What does this mean for contractors, sellers and buyers? The time to sell, buy or modify is now. Small businesses have the unique opportunity to help improve the national economy and their own finances by putting a stake in the housing market. Developers in particular can contribute to and profit from the coming economic rebound through investments in equipment, home improvement projects and other ventures.

Building and expansion

Homebuilders and contractors often have a little more wiggle room during difficult housing markets. Not only do their numbers skew low due to the way their accounts are kept, but their sales can be expected to increase for six years once the economic upturn picks up speed. If there are acres of land you hold that await development, now is the time to draw up blueprints and get quotes.

Equipment

If you are an independent contractor or you own a small building company, now is the time to invest in your equipment. Excavators and other heavy machinery will make you more effective at your job and help reduce your labor costs. Keeping your costs low keeps your quotes low, which means more business. When the market is pointing to increased investment in homebuilding and development, it makes sense to invest in your company’s equipment and machinery to meet the demands of the market.

Home improvement projects

Flipping homes is a time-honored tradition and investment for many families. The process of purchasing a low-priced home and making significant improvements can be a thrilling challenge for savvy investors. While the housing market is recovering from stagnant prices, now is the time to invest more funds into a second home. Strike while prices are low to add on a garage, new roof or other improvements to help make a profit. In fact, many real estate investors often miss out by waiting too long for fear of further depreciation. Be sure to measure your investment against current home values in the neighborhood and projected recovery rates.

It’s been a slow road to recovery from the largest economic crisis since the Great Depression. However, hints that the housing market is finally picking up speed are encouraging. Land is one of the soundest investments you can make, so now is the ideal time to invest in new buildings and home improvements. Purchasing new equipment and technologies for your contracting company are smart investments for a market that could pick up speed for the next seven years. Survey the housing market in your business area, research your opportunities and chase down those profits.

Using excavators and heavy machinery can help your outfit take advantage of the recovering housing market

This was posted in Bdaily's Members' News section by Shirl Kilmer .