Sticks, Bricks and Other Profundities

West Michigan real estate agents hope 2011 brings steady or higher home sales

noreply@blogger.com (Jeff Dickinson) — Mon, 24 Jan 2011 16:36:00 +0000

Interesting article by Cami Reister of the Grand Rapids Press

Great News for buyers and sellers.

http://www.mlive.com/business/west-michigan/index.ssf/2011/01/west_michigan_real_estate_agen_3.html

Homebuilders economist warns against government regulation at Grand Rapids summit

noreply@blogger.com (Jeff Dickinson) — Wed, 19 Jan 2011 16:34:00 +0000

By Cami Reister/ Grand Rapids Press

GRAND RAPIDS — Be thoughtful. Be careful. Beware the unintended consequences.

That is the mantra of Elliot F. Eisenberg, an economist with the National Association of Homebuilders who addressed a crowd of about 140 builders, suppliers and others attending the West Michigan Home & Building Summit on Tuesday.

Eisenberg, speaking at the Prince Conference Center at Calvin College, was cautioning about the negative effects of the often well-intentioned regulation that comes from all layers of government.

“You have to think of the behavioral consequences that occur when you change the rules of the game,” he said. “Most laws that are passed aren’t thought through all that carefully.”

Eisenberg listed four cities with affordable median home prices — Atlanta, Greenville, S.C., Houston and Oklahoma City — and compared them to four cities with median prices far above that: Boston, Boulder, Colo., Burlington, Vt., and Seattle. “What’s the difference?” he asked. “Regulation has turned these cities into places that became exceptionally unfriendly to builders.”

Eisenberg worked the room during his speech, requiring audience participation and spurring frequent laughter with his examples that drew on NFL overtime rules, meth labs, LoJacks, The Club, drunken driving, saving the whales and AIDS prevention.

The bottom line in every example was to focus on three things before regulation is passed: market forces, the intended outcome and externalities. If that happens: “We could solve a lot of the world’s problems,” he said.
Matt Garrison, owner of Ridgeline Reconstruction, said he enjoyed Eisenberg’s talk.

“I’m pro-regulation because it creates some barriers, it keeps some of the riffraff out,” Garrison said. “But it does create some problems of lessening the potential for clients.”

Lee Schwartz, executive vice president of the Michigan Association of Home Builders, said they face troubles from three layers of regulation: local, state and especially federal, where agencies push regulation on the states.

And even though President Obama wrote an opinion piece for the Wall Street Journal published Tuesday announcing an executive order mandating a government-wide review of regulations to remove unnecessary obstacles to job creation, Schwartz was not hopeful.

“I’ve seen it before,” he said. “It doesn’t matter who the president is. ... Changing the culture within those agencies, that’s really difficult.”

Dale Shugars, executive vice president of the Home & Building Association of Greater Grand Rapids, which organized the summit, said he wished someone had shared Eisenberg’s logic when he was serving in the state Legislature.

“The unintended consequences of policy is something you really have to be careful of,” Shugars said. “Probably Congress should take a look at that.”

Grand Rapids ranks as one of most affordable U.S. cities for home buying

noreply@blogger.com (Jeff Dickinson) — Wed, 24 Nov 2010 17:00:00 +0000

Published: Tuesday, November 23, 2010, 10:54 AM Updated: Tuesday, November 23, 2010, 11:40 AM

Troy Reimink | The Grand Rapids Press

An industry report ranks Grand Rapids as the nation's third most affordable city in which to buy a home.

The National Association of Home Builders / Wells Fargo Housing Opportunity Index lists Grand Rapids behind Indianapolis and Youngstown, Ohio, with an "affordability score" of 90.4 percent, based on a city's median home price (for Grand Rapids, $101,000) and median income ($62,100). In other words, 90.4 percent of the city's for-sale homes are considered affordable.

CNN Money's analysis confuses Grand Rapids' geography slightly, but manages to paint a general picture:

This central Michigan city has had a few lives. Its first claim to fame was as the "Furniture City." Grand Rapids furniture -- particularly the oak tables, chairs and cabinets -- graced the interiors of homes both grand and modest.

Once the great hardwood forests of northern Michigan petered out, the town turned to the auto industry for sustenance. Today, it's health care and consumer goods manufacturing.

Anyway, Grand Rapids jumps two spots from the same report last year, when the median home price in the city was $103,000.

New housing starts in Muskegon area edging up

noreply@blogger.com (Jeff Dickinson) — Fri, 29 Oct 2010 14:38:00 +0000

Dave Alexander/ Muskegon Chronicle

Amid the gloomy economic news, many might be surprised to learn that new houses are under construction in Muskegon and northwest Ottawa counties.

It appears local new home construction has bottomed out and is beginning to rebound. The surviving West Michigan home builders have restructured while others have gone bankrupt, out of business or both.

No company tells the survival story in the new home construction industry better than Eastbrook Homes of Grand Rapids. One of West Michigan’s leading home builders has gone from a peak of 350 housing units built in 2005 to an estimated 170 this year. Company employment has dropped from a high of 72 to 31 today.

Eastbrook continues building houses with construction under way in the Churchill Woods subdivision in Norton Shores and the Hathaway Lake subdivision in north Ottawa County’s Crockery Township. It leads Lakeshore home builders with 33 starts so far this year, according to Grand Rapids-based Builder Track.

“We remain here because we like it and believe that West Michigan will be back,” President Mick McGraw said of the company’s continued investment along the Lakeshore.

Norton Shores has been the leader in new home starts in Muskegon County the past two decades. The city peaked at 166 new housing units in 2001 and had 70 units as recently as 2007.

City construction permit records show the bottom fell out of new home building in 2009 with only nine new housing units. So far this year as of Sept. 1, the city issued 10 permits with another five pending, city officials said.

Eastbrook homes has focused its Muskegon County strategy on Norton Shores. The company entered the Muskegon market in 2002 with the development of Windflower Bay on the north shore of Little Black Lake.

Eastbrook has survived because it was not strapped with debt for unsold subdivisions or homes built on “speculation,” company officials said. The company with 43 years of building homes in West Michigan — constructing more than 8,000 over the decades — entered the mortgage market meltdown in 2008 without owing creditors, McGraw said.

The enviable cash position the company enjoys has allowed it to add to its holdings in Muskegon County. Eastbrook Homes has been opportunistic in Norton Shores by being in position to purchase a deeply discounted development that stalled in the face of the Great Recession.

“Now we have an opportunity to invest and have chances to look for good opportunities,” McGraw said of making investments on a cash-only basis. Eastbrook continues to pursue a waterfront development on White Lake on the former Whitehall Leather Co. tannery site that is now undergoing environmental cleanup.

In August, Eastbrook announced it purchased Churchill Woods subdivision on Henry Street south of Porter Road in Norton Shores. Churchill Woods will be sold by Nexes Realty and Bill Carlston, a leading residential real estate agent and subdivision developer in Muskegon.

Chronicle/Cory MorseJim Rummelt of Den Ketelaar Plumbing Inc. in Grand Rapids works on installing cross-linked polyethylene tubing as part of the construction of a home in the Hathaway Lake subdivision in Crockery Township.

Carlston and local developer Jeff Jacobs began the Churchill Woods development in 2006 and had an agreement to sell all 44 lots to Bosgraf Homes of Holland. The subdivision began but the builder ran smack into the real estate crash, Carlston said.

Eastbrook purchased Churchill Woods from a bank and in another case signed an exclusive agreement to develop the 49-lot Berryfield subdivision in Norton Shores for Community Shores Bank. Community Shores ended up with Berryfield at the corner of Martin and Farr roads after the developer put in the roads and utilities but was unable to build a single house due to the economy.

“They have always worked with their own cash,” Carlston said of Eastbrook’s survival through the Great Recession. “They have had strong financials and not had to go to the bank.”

Carlston estimated that more than 50 builders were constructing homes in Muskegon County during the peak building years but that number has been cut to a dozen. Those that survived also are building, according to Clayton Darrow of ABC Supply Co. in Muskegon, 2285 Roberts

The wholesale supplier of building supplies and materials has seen many of its contractor customers go into home remodeling. Others have gone from building 20-30 homes a year to 2-3, Darrow said.

“I think we hit bottom a couple of months ago,” he said of the local home construction market. “Everyone has gone back to the basics as many owners are swinging their own hammers.”

Eastbrook’s Bob Sorensen — vice president of sales and marketing — said the company’s semi-custom home lineup has changed in these economic times. Value-oriented home designs that he called “simple elegance” is what have become comfortable to clients.

“The show-off space is gone,” Sorensen said of large, seldom-used formal dining rooms. The overall square-footage of homes has declined with the average prices, he said of a company with a marketing tagline of “always more home for the money.”

Chronicle/Cory MorseHouses in the Churchill Woods subdivision in Norton Shores.

A two-bedroom, 1,250-square-foot ranch condominium in Windflower Bay is priced at less than $140,000, while a three-bedroom 1,500-square-foot single-family home in Pine Meadows off Filmore Street south of Grand Haven begins at less than $185,000, according to Eastbrook’s website.

The buyers in this depressed real estate market tend to be growing families or those moving into West Michigan due to a new job, McGraw said. Retirees and empty-nesters continue to be interested in new homes but selling their existing one can be an obstacle, he said.

“Our biggest challenge in this kind of a market is selling what they already have,” Carlston said.

Home prices are being depressed by a large amount of bank-owned properties on the market due to the large numbers of mortgage foreclosures, Carlston said. Nearly half of all of the homes sold in Muskegon are owned by a bank, he estimated.

Housing starts up unexpectedly in September

noreply@blogger.com (Jeff Dickinson) — Thu, 21 Oct 2010 14:34:00 +0000

Great Article...

Housing starts up, but market still uncertain.

Please respond to me with your thoughts as well!

http://www.msnbc.msn.com/id/39737692/ns/business-real_estate/

Here's 5 more reasons to buy a new home now!

noreply@blogger.com (Jeff Dickinson) — Tue, 05 Oct 2010 14:29:00 +0000

by Steve Harney blog post July 27, 2010

Homeownership almost seems like a dirty word in today’s society. People are blogging, tweeting and facebooking their belief that buying a home is just plain stupid. I respect their opinion on the issue though I totally disagree. Why?

This might be the best time to buy a home in American real estate history.

Some might think I’m crazy. Cynics might think that I am saying this because I still hold a real estate license (though I have not listed nor sold a home in ten years). My reason for saying it is actually quite simple. Owning a home makes more sense than not owning a home for the vast majority of families in this country. Let me give you five reasons why.

1. Real Estate is a Great Long Term Investment

Don’t take my word on this. This is what Mike Mandel, former chief economist at BusinessWeek and current Senior Fellow at Wharton’s Mack Center for Technological Innovation, had to say:

We’ve just had the biggest boom and bust in real estate in recent history. Nevertheless, real estate has still greatly outperformed the stock market over the past ten years.

Below is his chart actually showing the difference between real estate and the stock market.

2. A Home Is a Better Place to Raise a Family

Don’t take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

78% said it was a good place to raise children
75% said because they would feel safe
70% said because you have control of your own space

3. A Home Creates a Sense of Community

Don’t take my word on this. The Federal Reserve Bank of New York just published a paper The Homeownership Gap. The paper explained:

Because owners have a financial interest in their property, they have incentives to take measures that will maintain or increase the value of that property. Some of these measures—such as fixing a leaky roof—are closely related to the house itself. Others, such as investing resources in the betterment of the neighborhood and the community, have broader beneficial effects on the local area, creating what economists call “positive externalities.”

4. It’s Cheaper to Own Than Rent in Many Parts of the Country

Don’t take my word on this. Housing Wire just reported on a Credit Suisse study:

While a segment of the renting population continues to rent, many are looking to dip their toes in the homeownership waters. Credit Suisse said the percentage of median household income needed to pay the mortgage on a median priced home is at a 30-year low… Low mortgage rates and property values makes homeownership more attractive than renting for many. In many markets — including Washington DC, California’s Inland Empire, Las Vegas and Phoenix — paying for a mortgage is less expensive than renting.

And here is a graph from the study:

5. The People Who Do Buy a Home Don’t Regret It

Don’t take my word on this. Probably the best people to ask if buying a home makes sense are the people who currently own homes. A recent national poll commissioned by Bankrate.com found:

Ninety percent of homeowners say they don’t regret buying their home despite a nationwide tsunami of foreclosures, short sales and loan modifications.

It’s a great long term investment. It’s a great place to raise a family. It gives you a greater sense of community. It’s less expensive than renting. People who currently own have no regrets. Buying a home seems like a no brainer to me.

10 reasons to buy a home now... don't miss out!

noreply@blogger.com (Jeff Dickinson) — Thu, 16 Sep 2010 20:38:00 +0000

10 Reasons to Buy a Home

Enough with the doom and gloom about homeownership. Brett Arends explains why owning a home is a good thing.

The Wall Street Journal, By Brett Arends

September 16, 2010

Enough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make your rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

Five Reasons Not to Rent...

noreply@blogger.com (Jeff Dickinson) — Tue, 31 Aug 2010 20:36:00 +0000

Daily Real Estate News | August 30, 2010 | 5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.

Here are five of them:

Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.
Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Source: The New York Times, Ron Lieber (08/27/2010)

Good news for Michigan!

noreply@blogger.com (Jeff Dickinson) — Tue, 17 Aug 2010 20:35:00 +0000

The top 10 housing markets of the future

3. Michigan

Biggest home-price increase projected in 2014: Detroit-Livonia-Dearborn metro

Forecast 4-year price increase: 33.1%
Current median price: $51,000
Prices to reach trough in: 2011 Q2
Median family income: $54,400
Population: 1.92 million

Since reaching a peak in 2006, home prices in the Detroit area have fallen 60.5%, according to the Fiserv Case-Shiller Indexes. As homes have become more affordable — the median home price in Detroit is lower than the median family income — demand is expected to pick up. Prices are forecast to jump 33.1% over the next four years. George Moma, a broker with Century 21 Dupont Realtors, says the growing prevalence of short sales over foreclosures will help drive up the median price in the Detroit metro area. He adds that the area is attracting interest among international investors from the U.K., Dubai, Russia, India, Ireland and France.

Index used to calculate historical home price changes: Case-Shiller

noreply@blogger.com (Jeff Dickinson) — Thu, 05 Aug 2010 20:30:00 +0000

"Sometimes as a country we over react and do not let the facts guide but rely on "emotion."

The attached article is a good look at what could take place, given the "facts."

If you believe we can correct some of the basic economic issues we are facing ( that we quit spending and reduce the uncertainties created by Health care costs, tax increases ) and get the private sector feeling positive about the future again....we may see very well see this problem arise....what do you think?"

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/HomebuyingGuideDyn.aspx?cp-documentid=25036785&GT1=33006

Lower interest rates equal more home buying power!!

noreply@blogger.com (Jeff Dickinson) — Mon, 02 Aug 2010 20:08:00 +0000

Lower Interest rates equal more home buying power!

We know interest rates are historically low, but do we know what that means? For instance a $150,000 mortgage at 4.5% interest rate is a payment of $760.03 (p&i) vs. the same mortage amount at 5.5% is $851.68 (p&i) that's a savings of $158.97 every month!

What would you do with the extra dollars??

Great article... Tell anyone and everyone if they can afford to take advantage of these great rates they absolutely should!!

http://news.yahoo.com/s/ap/20100729/ap_on_bi_ge/us_mortgage_rates

Are you done with the Government Stimulus?

noreply@blogger.com (Jeff Dickinson) — Fri, 30 Jul 2010 20:05:00 +0000

If you're like me, you're done Government stimulus... Read below... interesting commentary~

From the Editor of BIG BUILDER Magazine

A Message to Capitol Hill from Housing Industry: Say You're Done with Housing Stimulus

A Message to Capitol Hill from Housing Industry: Say You're Done with Housing Stimulus

A couple of observations: 1. Americans procrastinate, and 2. the danse macabre that has gone on between Wall Street and Capitol Hill policy-makers must stop, if for no other reason than this. Their ludicrous performance is another reason for Americans to procrastinate.

Washington needs to do one thing loud and clear right now in its mission to improve America's jobs outlook, and home builders and developers would do well to demand it from anybody in Washington who seriously plans to keep his or her job after early November.

No more stimulus programs that contain federal tax credit programs for home buyers. Over. Done.

Especially now that financial regulation reform is about to go live, it is precisely the moment for housing's industry leaders to insist that Congress, the administration, and the Fed pipe down and allow the private sector to resume work to clear residential real estate values via the efficiency of market forces.

Author and behavioral economist Dan Ariely discusses procrastination at length in his work. Our human and cultural nature seems to predispose us to need deadlines to act, including in such important decisions as buying a home.

Clearly, after two administrations' housing stimulus policies and the better part of three years of witnessing their impact, here's what we can best tell about where those programs have left us.

Stimulating demand has--in combination with reduced home building activity--accelerated the reduction of the surplus of new homes. This is positive.
By the same token, stimulus--in combination with bank bailouts and NOL carryback extensions--stalled real estate markets from behaving as they should have.
Also, by changing, extending, and expanding the inclusiveness of the home buyer tax credits a number of times, potential home buyers have begun to think that if they go ahead and buy a home with no handout from Uncle Sam, they'll look like a fool when a few months later, Congress passes another round of tax credits they could have qualified for.

After all this, we're left with the exact opposite of pulling buyers forward. Home buyers are confused. They might buy now, but what if Congress concocts yet another tax credit, amounting to thousands of dollars in a handout on a purchase later in the year or next year. Expectation that the "Lost Our Lease Clearance!" sale signs will be plastered across the storefront windows over and over and over again has fed into Americans' habit of procrastination.

What's more, policy--since 2008 at least--has become a genuine barometer of officialized fear. The more policy, the more grim the indications are with respect to the focus of that policy. So we've come to connect policy with "holy moly, things are really much worse than we even knew, so we should probably just sit tight."

Industry leaders should unify and raise their voices in a clear call to action for Capitol Hill and the federal government agencies. That action is simply and forcefully to assert their confidence that the market may be far from strong, but it's strong enough to stand on its own two feet and work as it should.

We only need to look back at how quickly, how badly things went from 2007 to 2008 to 2009 to begin to sense confidence that that kind of devastating destabilization has run its course.

But right now, as Americans procrastinate, the American domestic economic outlook dims. A sequence of events negative to property values, residential investment, consumer spending, corporate earnings, small business viability, and, ultimately, economic recovery goes into motion.

Why are Americans procrastinating now? Home mortgage rates, with a 4.6- handle on an 80% loan-to-value loan, are historically low. No, we mean historically historically low. Prices on new homes, a smidge over $200K median, are low too, especially for what you get in a new home these days.

Now too, supply--especially of new homes--is trending toward scarcity, an unheard of phenomenon for the better part of five years or so.

Let the battle of the theorists and economists rage on as to whether austerity or more stimulus is a better route with respect to influencing the direction of the GDP and its ability to create domestic jobs and ratchet down unemployment.

A third of the way through an earnings season that had been anticipated to be fraught with doubt, uncertainty, and diminishing returns, we've seen resilience in materials with companies like Alcoa, in technology with Intel, and in financial services with JPMorgan.

We're also seeing signs of stabilization and resolve in some of the more worrisome Eurozone states, and calmer heads are now prevailing, essentially as heads of those states do one thing: express confidence by piping down.

Global demand will continue to be a bright spot if not the juggernaut it's been; but it won't redound to enough significant effect in our domestic jobs situation.

Focus needs to be on American jobs. If both Wall Street and Capitol Hill would do what they're supposed to do on job creation and stop their death dance, local market economies would begin to improve.

An issue we don't hear much about is the number of industry sectors that are passing through both cyclical and structural secular shifts in demand.

America became the pilot nation for a society that shifted supply and demand dynamics from what people need to what they want. The economics of meeting needs were subsumed by the algorithmically more glorious economics of meeting people's wants.

We called that our quality of life, which is relatively high if not the highest among nations.

After the insanity, the price tag in real dollars, the capacity, and the demand for what we want are in question. How many things, beyond what we absolutely need, can we afford these days as we deleverage our household balance sheets?

As home builders and developers, the task will be to persuade a procrastinator to stop doing that. You'll want some help from the government though, which would come in the form of a clear, simple statement that no more home buyer tax credits are in the pipeline.

Perception is reality... what's yours?

noreply@blogger.com (Jeff Dickinson) — Wed, 23 Jun 2010 20:05:00 +0000

Despite what the national news tell us, the National Association of Realtors has a refreshing perspective on recent housing statistics. What is your perception of the current housing situation?

C:\Documents and Settings\halso\Local Settings\Temporary Internet Files\OLKD\REALTOR Magazine-Daily News-Continued Strong Pace for Existing-Home Sales.mht

One thing's we can all agree on... there's never been a better time to buy!

2010 Parade of Homes... don't miss out

noreply@blogger.com (Jeff Dickinson) — Thu, 10 Jun 2010 19:57:00 +0000

It's a great time to look at new homes during the 2010 Parade of Homes!

The growth is slight ... there are 45 up from last year's 42 parade home entries - but it is growth nonetheless. It's a sign that builders are seeing more confidence in the marketplace.

West Hamptons- Forest Hills Schools

Eastbrook is delighted to have two homes in the parade this year. Our "Newport" design is featured at West Hamptons- 216 Tuckahoe Court, NE GR

Cook's Crossing-Byron Center Schools

In Byron Center, we have featured the "Alcott" a charming cottage style home located at Cook's Crossing- 833 Cobblestone Way.

Check out this article- Eastbrook was featured!

http://www.mlive.com/business/west-michigan/index.ssf/2010/05/housing_starts_up_as_51st_annu.html

Grand Rapids Gets Good News so does Real Estate

noreply@blogger.com (Jeff Dickinson) — Wed, 12 May 2010 19:56:00 +0000

Some additional good news in our local economy today. Given the difficult times and the really bad press the state of Michigan gets, it is sometimes forgotten that there are positives here in this state. Especially in West and Central Michigan. We are not Detroit....and why is that?

Maybe the article is right....it is unique "combination of business leadership, public - private cooperation, and deep pockets of local philanthropists." http://www.mlive.com/business/west-michigan/index.ssf/2010/05/fortune_magazine_cnnmoney_call.html

Maybe there are additional reasons...like a great community of people with good work ethics, values and a desire not to be beat down. Not said in the article, but true.

More positive news on the Real Estate front as well.....see the following link for more......

http://www.realtor.org/RMODaily.nsf/pages/News2010051108?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DailyRealEstateNews+%28Daily+Real+Estate+News%29&utm_content=Google+Feedfetcher

Real Estate News

noreply@blogger.com (Jeff Dickinson) — Fri, 23 Apr 2010 19:53:00 +0000

Sales in March were up, which is a positive sign. This was true for us here at Eastbrook Homes as well as true for the overall Real Estate industry (see attached).

http://www.realtor.org/rmodaily.nsf/pages/News2010042201?OpenDocument&WT.cg_n=RMO&WT.cg_s=RSSDaily

Home sales have a ways to go, but for all of us, positive news on this front is good news as it (real estate ) plays an important role in our economy.

Auburn Update;

noreply@blogger.com (Jeff Dickinson) — Wed, 21 Apr 2010 19:52:00 +0000

We are excited about our communities in Auburn, Alabama and the success we are starting to see. Auburn is a great place, and we are proud to be building in this great community in two great locations....Shelton Cove and The Preserve. Take a look at each via the following links. http://www.eastbrookhomes.com/ehs/communities/prs.html http://www.eastbrookhomes.com/ehs/communities/scv.html

We are also excited to get started on our clubhouse and pool and other amenities at The Preserve. While they are a significant investment, we believe they add a bunch of value and most of all serve as a great resource for the residents at The Preserve.

If you are in Auburn, take a look at Shelton Cove and the Preserve. Two great places that you could call "home".

It is time!!!

noreply@blogger.com (Jeff Dickinson) — Fri, 02 Apr 2010 19:50:00 +0000

My last entry was "Spring has Sprung" and that statement has proven true in a couple of ways....for which both I am very happy.

First...the weather....it is great to have sun and warm weather....wow...if nothing else, all of our attitudes are better. That is always a good thing.

Second...from a business perspective, another ...wow....March was the best single month we have seen in about 5 years. Probably in some ways because of the same reasons noted above....peoples outlook is improved...simply because the weather is better.....it happens every year....

I have said this before....in many ways ....in spite of the potential to appear to be self serving .....I will say some of it again....but from a business perspective....people....those thinking about buying a home....should be doing so right now.....and April is the last best month to jump on the govt Stimulus ....to do so you need to have a purchase agreement executed by April 30, 2010.....interest rates are great (but slowly rising) and prices of homes...new homes...are at the best values we most likely will see....in a long time....or arguably ever.

If my kids were old enough to buy a home....I would do everything i could to help them do so.....right now! It is time!

Have a great day...and enjoy the weather...and opportunities....

Spring is Springing

noreply@blogger.com (Jeff Dickinson) — Thu, 25 Mar 2010 19:46:00 +0000

It appears that the weather is changing and Spring is springing. That is always welcome this time of year for most of us, as the change of season is kind of like a renewal. No matter what seeing the sun more is very much appreciated.

The better weather also usually brings out more prospects to our models. We always look forward to that. We have a lot of new plans and features to show off and are excited to do so.

Our most recent William Sonoma Event was a smashing success. Held at the new model in our West Hampton's Community just under one hundred people took part in demonstrations by William Sonoma (wow...there was some great food to taste after they were done!)...by Turfs R Us on landscape ideas (they sent most away with some nice plants and give aways), Spectrum Sound on in home theater and differences in Blue Ray vs normal dvd, Grand Rapids Lighting displayed some of the newest in lighting ideas (both fixed and table lighting), and Fire and Water Art (Kathleen Mooney www.fire-and-water-art.com) had some terrific art displayed throughout the home.

If you missed out on this event you can catch a similar event at our Hathaway Lakes community this Saturday March 27 at 1 Pm. Take a look at the invitation on our web site....we would love to have you attend.

New Blog Location

noreply@blogger.com (Tim Dickinson) — Tue, 16 Mar 2010 20:34:00 +0000

Please see this blog at it's new home blog.eastbrookhomes.com

All the content of this blog plus new content will be located in the new location. We will no longer be updating this page. Thanks for following us!

Good News

noreply@blogger.com (Bob Sorensen) — Mon, 15 Mar 2010 23:52:00 +0000

Some interesting information and perhaps good news regarding housing and new construction.

http://www.realtor.org/RMODaily.nsf/pages/News2010031502?OpenDocument

Sweet Home Alabama.....

noreply@blogger.com (Bob Sorensen) — Tue, 09 Mar 2010 16:08:00 +0000

I just am returning from a week in Auburn. What a great week....the weather was great...(I was blamed for the rain the first day I was there...but it was very nice the rest of the week!...do I get credit for that?). We are so fortunate to have two great communities now in Auburn (Shelton Cove and The Preserve). Both offer unique settings, great locations, and great value.

Shelton Cove is beautifully wooded (we worked hard to save the trees...and it really makes a difference...and is truly "green"). The value of the homes at Shelton Cove are outstanding....with prices starting in the 140's....with great appointments in each home!

The Preserve has been a project we have long been working on. We are now able to say that the Club House, Pool and the enhanced landscaping along Farmville Road is going to get started in April....wow! With these amenities...The Preserve will arguably be the best community...family community in all of Auburn....great community, amenities ( pool, club house, parks, walking trails) , great shcools, all minutes from downtown, Tiger Town, and transportation.

If you have not had a chance to look at either (on the web) please take a second to do so (see Alabama Communities...Preserve and Shelton Cove). If you live in Auburn...drive out and take a look. Watch for the start of the pool and clubhouse...and landscaping etc at the Preserve...it will be starting in the next 30 days or so ( weather permiting).

Have a great day.

Stimulus - Tax Credit - Revisited.

noreply@blogger.com (Bob Sorensen) — Wed, 24 Feb 2010 13:19:00 +0000

The tax credit for purchasing a home has been a positive in some ways for our business. We certainly have seen quite a few folks who want to take advantage of the tax credit ( $8000 for a first time buyer and $6500 for an "existing" home owner (defined as someone who has lived in their home for 5 out of the last 8 years)). Buyers certainly can still do so...by purchasing one of our inventory or "showcase" homes.

Unfortunately, we have passed the point in time where we can build a home from scratch and still help a customer meet the time parameters of the stimulus (June 30, 2010 close and move in). Beyond the more obvious part of finishing the home by that time...is the ability of the lender, along with the customer, to have all the necessary documents and underwriting approvals etc. completed for closing on the mortgage by the end date. It takes alot of effort and coordination to make a closing take place.

It remains a great time to buy...and you can still buy new...and buy now...by purchasing one of our inventory homes (purchase need be prior to April 30, and close prior to June 30).

If you have any questions regarding building a new home, or the stimulus...please let me or one of our team know. We will be happy to try to help.

Have a great day...

Good Idea?

noreply@blogger.com (Bob Sorensen) — Tue, 16 Feb 2010 18:01:00 +0000

There are a few ideas that have been bandied about relative to the foreclosure problem that our market faces.....
One that is gaining more and more momentum is that of debt forgiveness. This concept is more than simply forgiving what people owe....the best of these proposals would also include those that have debt forgiven, would be required to share any gain when the house is sold ( 50%). while not perfect, this idea could be the absolute best way for our real estate market to clean out some of the things that are keeping the market from stabilizing and moving forward with more certainty and confidence.

see the following link http://www.realtor.org/RMODaily.nsf/pages/News2010021503?OpenDocument

What do you think of that idea? Let me know your comments, I would love to hear them.