Still I hear the question, “Will there be a double dip recession?” No. I don’t think so. During past recessions the real estate and construction markets slowed down in the same way we recently saw with the Great Recession. The economy’s upswing came with the revitalization of home construction, an industry which generated jobs. Home building is what we’ve been missing, but I don’t think we will be for long.
Wondering from where those home building jobs will come? The President and CEO of Freestone, Scott Griffin, joined me “On The Money” last Friday. Freestone is a premier new-home builder. They are building 120 homes this year and plan to build over 300 next year. The National Association of Home Builders estimates that for every single family home built three jobs are created. That’s a lot of jobs. Especially when you take into account these were some of the jobs lost during the recession. They aren’t a brand new line of work.
Is Freestone the only company building? No. “Big builders are out trying to get everything they can. If you’re going to buy, and you have the capital, now is the time,” said Scott. “Home prices can’t go any lower than they are currently. The people building the homes aren’t getting rich. They are just making wages and keeping their lights on.” He predicted in the next few years shortages of buildable lots will begin occurring, driving real estate prices up. In King County most of the properties reclaimed by banks have been sold, but “That low hanging fruit is gone,” said Scott.
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