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View Full Version : Home and Auto Buyers market for home improvement projects?


RJ
07-22-2008, 03:39 PM
With the economy not doing so well and fewer folks spending money right now I'm wondering if this might not be a good time to be having some home improvement work done. I work in the flooring business and I've seen things become very competitive this year. New construction has slowed to a crawl and now the guys who were mostly doing builder work have invaded the retail sector to try to survive. I'm seeing work being sold at crazy low margins, apparently just trying to generate cash flow. Despite the many price increases from our suppliers it seems like the few customers who are in the market are buying at lower prices today than they were a year ago.

Anyway, it got me thinking that rather than putting off getting some work on my own house done, perhaps I should be looking to buy now. I know that quite a few Planeteers work in home improvement type fields. Are any of you guys seeing the same trends? Is it in fact a buyers market?

HC_Chief
07-22-2008, 03:44 PM
Better strike now while the iron is hot. More & more people are looking to improve their current home, rather than go get a new one. That means increased demand in the home improvement market which will drive up prices.

Phobia
07-22-2008, 04:05 PM
No. Quite the opposite in fact.

StcChief
07-22-2008, 04:06 PM
No. Quite the opposite in fact.
I would think that as well, may be market area driven

RJ
07-22-2008, 04:11 PM
I would think that as well, may be market area driven



Maybe so. The other night I answered the phone and it was a guy who owned a landscaping company. We talked for a while and then I asked him how he got my number, I thought maybe he was using a criss-cross directory and canvassing my particular neighborhood. To my surprise, he was just randomly cold calling from the white pages. You know he's gotta be slow to be spending an evening doing that.

Anyway, I'm glad business is still strong for you guys. How about you send some south? In the meantime, I think I'll start getting some prices.

Phobia
07-22-2008, 04:17 PM
You want a buyer's market, cash talks. Cash. Just make sure you pick a reputable guy and structure the payments in accordance with the work being done.

Guru
07-22-2008, 04:34 PM
No. Quite the opposite in fact.

Kind of what I was thinking as well.

RJ
07-22-2008, 05:21 PM
I wonder if the new construction was as heavy there as it was here. Until about two years ago you couldn't swing a dead cat in Albuquerque without hitting a new housing development and a few hundred tradesmen working on it. I'd never seen anything like it. People would always ask, "Who the hell is buying all these houses?". Well, now we know. But as I mentioned in the starter, it seems like a large number of the companies who were doing the builder work are now forced to chase the residential stuff and they're driving down the prices. I know it's true in flooring and I've heard from business acquaintances that the same thing is happening with landscaping and painting.

Did KC Metro area see a big housing boom the way cities here in the southwest did?

FAX
07-22-2008, 05:31 PM
It seems to me that, if demand for new construction is down, it would be less expensive to hire independent- and sub-contractors for renovation work.

Why is that wrong, Mr. Phobia?

FAX

RJ
07-22-2008, 05:34 PM
FAX, that's why I'm wondering if the new housing construction demand maybe never got as high there as it was in other places.

FAX
07-22-2008, 05:37 PM
FAX, that's why I'm wondering if the new housing construction demand maybe never got as high there as it was in other places.

Ah. I see.

I know that, here in Nashville, there are flyers promoting home improvement work everywhere. The little advertising packet we receive in the mail is also chock full of ads for contract work (roofs, decks, floors, painting, etc.) . I haven't seen that before. Of course, some of them are in Spanish which is el stupido.

FAX

Phobia
07-22-2008, 06:40 PM
It seems to me that, if demand for new construction is down, it would be less expensive to hire independent- and sub-contractors for renovation work.

Why is that wrong, Mr. Phobia?

FAX
I don't know why. A lot of the builders are bankrupt and out of business pursuing other careers. The smart ones already had bank and are on hiatus until the market corrects. Many of my occasional subs have taken other full-time jobs. I can only speak to my experience and that's probably not enough data from which to draw a definitive conclusion.