Today's Housing Market

The housing market today is a much different market than it was 2 or even 3 years ago. Before 2007, consumers were able to borrow 90 to 120 percent of the value of their homes. As prices retreated and homeowners owed more on their homes than their real market value, homes were sent into foreclosure and back to the lenders. Lenders then dumped these foreclosure at huge discounts, furthering the eroding values, leading to more foreclosures, and creating a downward spiral.
This crash in the real estate market has created a cautious consumer, as well as a cautious lender. In this new market, equity will be key. Lender's are looking to finance projects with substantial equity so their leverage can be lower and they can be repaid as well as protect their own capital. At some point, banks will have to lend money in order to survive. They will most likely be looking to make conservative, low leverage deals to consumers with experience and a proven track record. A solid plan on paper will definitely not suffice; lenders want to see proven results.
What does all this mean to you as a consumer? Though the housing market is troubled, there are a few advantages to those consumers in the market for housing. One advantage is that if you are in a position to obtain financing, the time to build your dream home is now! With material, construction prices, and land at an all time low, there will never be a better time to build. The home you build today will only increase dramatically in value as the market gains ground. For the price it will cost you to build today, your return on your investment would be dramatic.
At Ramon Stewart Construction, we definitely have the track record to prove our success as builders. We are moving forward into this new market with cautious optimism, and a desire to continue to provide impeccable service to our clients. In an uncertain market, it pays to go with an experienced, seasoned builder who will guide you through the building process in a professional and diligent manner!