My home renovations biz is soooo slow, what else? (Union: sales, real estate)

[andybuildz]

I've been a home improvements contractor for the past 30+ years here onthe island that does everything from small punch list work up to additions and I can't remember the last time it was this slow. I've had to drop my labor prices way down and even still...
Even in the 80's when homes were forclosing left and right I was still pretty busy.
Real estate sales we all know is dropping off the map all over the map from here on the right coast clear accross to the left coast.
Same with renovations all over the country... Thats what some of my friends in other states are reporting to me is happening to them as well..

So what other businesses is this having such a bad effect on?

Is anyone prospering from any of this???

I know a lot of people blame a good deal of this on the war in Iraq and who knows whats to come with....
Here's a disturbing reminder of where we stand...not that anyone needs reminding...
http://www.nytimes.com/aponline/us/A...=1&oref=slogin

I'm curious how this current economy is effecting other people here on the island in their pocket books and in their minds.

[Jrprofess]

Originally Posted by andybuildz

I've been a home improvements contractor for the past 30+ years here onthe island that does everything from small punch list work up to additions and I can't remember the last time it was this slow. I've had to drop my labor prices way down and even still...
Even in the 80's when homes were forclosing left and right I was still pretty busy.
Real estate sales we all know is dropping off the map all over the map from here on the right coast clear accross to the left coast.
Same with renovations all over the country... Thats what some of my friends in other states are reporting to me is happening to them as well..

So what other bussinesses is this having such a bad effect on?

Is anyone prospering from any of this???

I know a lot of people blame a good deal of this on the war in Iraq and who knows whats to come with....
Here's a disturbing reminder of where we stand...not that anyone needs reminding...
http://www.nytimes.com/aponline/us/A...=1&oref=slogin

I'm curious how this current economy is effecting other people here on the island in their pocket books and in their minds.

As things evolved over the past ten years in Long Island and other suburbs I have witnessed a boom in everything from furniture/electronics purchasing to having every single birthday party/pre-school graduation/sweet sixteen event at a 4 star restaurant (exaggerating for effect). I think everyone is underestimating the length of time this correction will take and how many peripheral businesses it will impact...right down to the local "Kiddazzles" birthday spot. I see things being awfully stagnant up until 2010 in all home-related industries and discretionary areas of spending...which I think many have come to realize was not discretionary spending but things put on credit. How it has affected my wallet is probably in the approach I would take to larger purchases. Where in the past the 0 payments for umpteen months was prevalent, or you could transfer balances at 0% and if managed correctly take advantage of no interest to pay off things like student loans, etc, the credit market has turned and those options are no longer as available. I have always spent within my means for the most part, which simply means I will be paying for more things upfront than delaying payment.
I think this credit abuse will truly hurt your area of expertise for a long time. The boom in granite countertops was fueled by credit, not savings, and if families can make their way out of their current leveraged credit situation, they still have zero savings rate to do things like finish a basement or dormer a cape.

The fallout could be more folks mowing lawns, doing some of their own basic home improvements (light switches, painting, etc) and having a birthday party in their home with a homemade cake...that would not be the worst thing. I also think we are 6-12 months away from seeing a spike in the so-called better areas of the island in McMansion foreclosures for many who have over-extended themselves. The quicker we absorb the pain though, the sooner it will improve...

[clamboy]

I think the Blue Collar Elite are the most likely to flee.

Its ok ...unless theyre Union, they skirt their taxes anyway.

Remember the Vegas exodus?

I can just see their Dust Bowl faces loading up their Hummers for Tarheelsville right now.

Saddled with debt and bewildered by the halt of the Gravy train.

Ouch.

C

[KellyFG]

My DH has been in your field for 20 years and he manages ten million dollar and up projects in the hamptons now. Construction in that bracket is booming, anything under 5 million is dead. I'm glad my DH shifted his business to the Hamptons two years ago, had we still be working as a Mom & Pop home improvement co counting on all that home equity from our customers we'd be hurting right now.
We built alot of beautiful additions & renovations for "regular" people in the last several years, I hope they can afford to pay down those HELOCs & still keep their fancy leased cars, 2 week trips to disney, and pay off all that furniture with the 0% financing before it comes due. My DH & I were horrified when customers that were 5 years away from paying off their original loan told us they re-fied to a 30 yr & took out 80% of the equity to spend.....I knew then this was where LI & the country was headed.

[clamboy]

Originally Posted by KellyFG

My DH has been in your field for 20 years and he manages ten million dollar and up projects in the hamptons now. Construction in that bracket is booming, anything under 5 million is dead. I'm glad my DH shifted his business to the Hamptons two years ago, had we still be working as a Mom & Pop home improvement co counting on all that home equity from our customers we'd be hurting right now.
We built alot of beautiful additions & renovations for "regular" people in the last several years, I hope they can afford to pay down those HELOCs & still keep their fancy leased cars, 2 week trips to disney, and pay off all that furniture with the 0% financing before it comes due. My DH & I were horrified when customers that were 5 years away from paying off their original loan told us they re-fied to a 30 yr & took out 80% of the equity to spend.....I knew then this was where LI & the country was headed.

So what your saying then is that the rich have never been richer.

Good times ....good times.

Who says trickle down economics doesnt work.

FUGWB!

FU!

C

[KellyFG]

Originally Posted by clamboy

So what your saying then is that the rich have never been richer.

Good times ....good times.

Who says trickle down economics doesnt work.

FUGWB!

FU!

C

yup, they are more rich than ever. Totally unaffected by what is affecting us.
Oh wait, I shouldn't say that, some of them are affected in a major positive way by the current state affairs. For example the guys that make their millions betting on oil prices to go UP.

[ClarkStreetKid]

Another trickle down that may effect high growth areas.

RealEstateJournal | When Home Builders Hit the Skids Consumers Deal with Uncertainties

[okaydorothy]

My dh works in the Hamptons also ; but not for the very rich. He works for a company that has a branch out there.
The money out there is never ending. Wow ; anytime I go there its an eye opener.

Last week we were in the toy store in Southampton. Someone asked if they had the game machine ; WII ; they said, they only had two and they were sold for $700 each.

Upisland, they go for about $400.

My business here is ok. We will see next year in our heavy season.

d