The Housing Market
A Fluctuating Market Means Roofing Contractors Must Adapt
It’s no secret that residential home sales are slowing across the country, and that has raised concerns for many in the roofing industry. However, it’s not all bad news. Some areas of the West are still doing quite well and bucking the national trend. Additionally, mortgage rates have started to fall, making home buying and refinancing more affordable.
Selling a home in a fluctuating market is also an issue. For example, homes in Texas are now taking an average of 117 days from when the home went on the market to the close of sale. This is the longest in the nation. Hawaii and South Dakota are running 110 days, while Wyoming and Oregon are 105 and 99 days respectively. On the average, this is about 16% longer than just a few years ago.
On to better news. During the last ten years, New Mexico posted the highest gain in new home ownership in the West, up 11.5%. This was followed by Nevada with 9.2%, Arizona with 7.8%, and Hawaii with 4.9%. As far as home renovations go, Texas was the easiest on the homeowners budget with an average major home renovation costing about $122,000, which is 18% below the national average.
While prices may fluctuate across states, depending on the area, there are certain towns that are bucking the nationwide trend. The highest price for land in the United States is in Honolulu, Hawaii, at $3.5 million per acre. This is followed by Manhattan Beach, California, at $3.3 million per acre. In fact, six out the top ten per acre land values are in the West. Others are: Media, Washington, $1 million; Boulder, Colorado, $942,200; Park City, Utah, $838,300; and Portland, Oregon, $821,000.
These land prices also influence the cost of home backyard renovation. For example, the average cost of revamping a backyard in California costs $80.32 per sq.ft. while Alaska averages just $2.15 per sq.ft. For comparison purposes, the national average is $25.44 per sq.ft. This has nothing to do with the cost of the land, just the labor and material expense.
Accessory Dwelling Units (ADU) have become increasing popular. These are smaller homes built on the same residential lot for the purpose of housing and renting to another family. Clearly, the area must be zoned for the construction and there has to be plenty of land available. Many municipalities are becoming more accepting of this idea, and it’s a growing area in the construction market. Out of the top ten ADU states nationwide, five are located in the West. Average ADU construction costs per square foot are: Arizona, $251; California, $327; Colorado, $254; Hawaii, $332; and Nevada, $278.
When homeowners are considering relocating to another state, where exactly are they looking? According to Google searches, five of the top ten states researched nationwide for a possible new home are in the West. They include Alaska, Montana, North Dakota, South Dakota, and Wyoming. Clearly, some potential homeowners are looking for open land, a new perspective on life, and they don’t mind a little snow.
Once a house has finally sold, the number one issue for new buyers to secure the final closing is the roof condition to determine is renovation, repair, or a complete reroof is in order. This roof issue is followed by problems concerning mold and water damage, both of which are usually associated with a leaking roof. A sold house is indeed a roofing contractor’s best friend.
Marc Dodson
Editor
