Archive for January, 2010

What I learned at the Builders Show

Friday, January 29th, 2010

You can’t spend six days at the International Builders Show and not learn a few things about the housing market. And when the show is in Las Vegas, you’re bound to pick up a few tidbits unrelated to home building. Here’s a list of what I learned at the show in January:

• The NAHB says the worst is behind us in the housing market, and they have the stats to prove it.
• Manufacturers’ booths were filled with home builders looking to buy product – for projects going on right now.
• Builders are signing contracts with clients and breaking ground in many parts of the country.
• Manufacturers aren’t letting the recession stop them from introducing innovative new products.
• The NAHB, like many of us, is dealing with revenue shortfalls as best they can.
• In general, everyone I encountered feels 2010 will be better than 2009, no doubt.
• The design/build process continues to grow in acceptance.
• The shrimp appetizer at Koi in Planet Hollywood is the best shrimp I ever had in my life.
• The rooms at the Aria hotel in City Center are fully automated, and very cool, according to a few people who stayed there.
• City Center is overwhelmingly massive.
• A little bit of rain wreaks havoc on Las Vegas traffic.
• I should not allow myself to gamble. Ever.
• Cabs in Las Vegas stick you with a $3 fee for the convenience of paying with a credit card. Thieves.
• Carrot Top is not a good-looking man.

Were you at the Builders Show? What did you learn? Let me know. Or, scroll up to the first paragraph of this blog entry, look to the right and click where you see, “Leave a comment” or “Post or view comments.”

NAHB shares good economic news

Friday, January 22nd, 2010

Here’s some good economic news directly from the mouth of David Crowe, chief economist at the National Association of Home Builders. Crowe made remarks about the economy last week in a room filled with more dozens of people representing leading manufacturers in the housing industry.

During Crowe’s presentation, he mentioned the following reasons to feel good about the housing market and the economy in general:

- The recession ended in Q3 of 2009
- Job losses are tapering off
- Q3 of 2009 showed positive employment
- Interests are remaining low
- Housing starts bottomed out in 2009
- Home prices are stabilizing
- Ratio of home price to household income is back to sustainable level
- 50% of foreclosures are in only six states (problem is largely localized)
- 70% of foreclosures are in only 11 states
- Supply of unsold homes is down to roughly seven months from a peak of roughly 12

Crowe acknowledged that banks must begin lending again for a recovery to gain traction, and that worsening employment numbers also would hurt a recovery. But overall, he said, the worst is behind us and the general economic trend is up.

Do you see upward movement in your area? Let me know. Or, scroll up to the first paragraph of this blog entry, look to the right and click where you see, “Leave a comment” or “Post or view comments.”

You don’t use the Internet? At all?

Friday, January 15th, 2010

Yesterday I was reviewing the results of a recent online survey we conducted. One question we asked you was if your business maintains a website. Would you be surprised to know that 30% of you don’t have a company web site? I was surprised.

In addition to that question, we also asked you to comment on your Internet usage. Again, many responses included comments like these: “We don’t use the Internet” or “The Internet is a waste of time and money.”

Really?

On one hand, I understand the incredible power of word-of-mouth marketing. Many of you I’ve interviewed over the years tell me you don’t do any marketing because all of your business is by referral (but all of you I interviewed at least have a web site). That’s a powerful endorsement of the way you do business, and congratulations to all of you who operate this way.

On the other hand, how can you not have a company web site in 2010? Even the people referred to you by current or past clients need a place where they can review your past projects, and learn about your approach to design and construction. Yes, you’ll cover that in your initial face-to-face meeting with them, but they’ll still want to investigate you a bit before meeting you.

Maybe I’m looking at this from a glass-is-half-empty perspective. Maybe 70% website saturation is an improvement from this time last year, and the year before that. In this case, it’s good to see so many of you on board.

But if this is as good as it gets, I’m a little disappointed, and perplexed.

What do you think is going on here? Let me know. Or, scroll up to the first paragraph of this blog entry, look to the right and click where you see, “Leave a comment” or “Post or view comments.”

Design without reason

Friday, January 8th, 2010

When was the last time you sketched a house for fun? Was it back in college, or high school? Or did you jot down a few ideas last week?

Designing for fun can be a nice break from chasing clients, arguing with banks and competing in a down market. Consider spending five or ten minutes this week to doodle a little. Give it a shot and see how you feel when you’re done. It doesn’t have to be a full set of construction documents. Start with a front elevation to get things going.

Think back to the last time a client rejected your idea. Isn’t it frustrating? Why not design a home the way you want to see it designed?

I’m sure you have a few design ideas floating around in your head. Get them on paper. Then file that paper in a folder and save it for later. Do this once a week and you’ll have a nice idea file in no time. You never know when you might be able to make them a reality.