I'm betting that for some of you, your New Year's resolution was to turn into Rip Van Winkle and sleep through 2008.
And no wonder: New-home sales are forecast to be 788,000 in 2007 and 693,000 in 2008, down from 1.05 million 2006—and no sustained improvement is expected until 2009. Median new-home prices are expected to continue to decline slightly in 2008. Meanwhile, 30-year fixed-rate mortgages are expected to rise to about 6.4 percent by year's end.
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| Jean Dimeo Editorial Director |
Remodeling expenditures rose in 2007 to an estimated $306 billion, but the deceleration in house prices, coupled with rising interest rates, slowed the rate of growth. The same holds true for 2008.
But even though you might want to throw the covers over your head, I think this is an excellent time to bolt out of bed and prepare your business for the market rebound in 2009. And Building Products can help. The magazine, along with its Web site, ebuild.com, will continue to provide you the information you need about products and materials that can save you time, money, and labor; improve your profitability; or make your clients say "wow."
Despite the cool-down, one aspect of the market—green home building and remodeling—is red hot, and you should take this year to educate yourself about this here-to-stay trend. In 2008, this magazine will publish two green-themed issues (March/April and September/October) in response to ballooning interest from both readers and product manufacturers. These issues will be loaded with stories that can help you get started building and remodeling green, or dive in even deeper if you already do.
Meanwhile, Hanley Wood, the media company that publishes this magazine, now is producing Green Products and Technology magazine, along with its companion Web site (www.greenproductsandtechnology.com), an e-newsletter, and the Eco Home Expo trade show and conference to be held in Austin, Texas, in October. Green Products and Technology is devoted specifically to green building products and technologies, the backbone of a well-built green home. It will provide you with a good-better-best approach to building green and will delve deep and wide into a variety of topics. My staff and I, along with veteran green builder and editor Rick Schwolsky, are excited and proud to be editing this new magazine and Web site.
Finally, you should use this downtime to research upgrades that your company can consider offering customers. There are many products and finishes homeowners and buyers crave. They would be willing to pay just a little bit more for upgrades if they realize they can roll the expense into their mortgage. You are leaving money on the table by not offering more. -- BUILDING PRODUCTS