Skyrocketing Building Prices - Don't blame U.S.

So, you want to build a home? With 4% interest rates (the lowest in 50 years) and labor available at a discount, it seems to make sense. Most of the cost of housing is in materials (Lumber, copper, concrete, steel, etc.). Houston, there's a problem in the claimed "recovery" from the recession. Just because our economy is lagging it does not mean the world economy is following suit. If you can just imagine what the world thought of our massive growth over the last 75 years. It is time for us to consider looking out our windows at our chief competition as consumers. Right now India, China, and Brazil are exploding with growth. Their economies are booming so much that we are exporting most of our lumber, steel, and copper (to name a few items) to these countries. There is such a demand that we are exhausting natural resources around the globe at a staggering pace and thus driving up prices. Steel has increased 30% since Sept. 2010! Material costs have risen so much that the mere savings you will find in labor cannot offset the skyrocketing cost of the product itself. It makes you wonder how much money Brazil is putting into the infrastructure for the 2016 olympics (i.e. Birds Nest II).

The secret is to buy existing homes at recessed prices and upgrade. Yep, it sounds easy. I know that everyone wants to buy a home and immediately start the construction project, right? Don't be scared off - you can save tens of thousands of dollars or more and live in a home built on a mature site with quality materials. That's my tip (or word for the wise)!

Hello..is anyone home? HELLO

Imagine being homeless. No, not under a bridge in the stereotypical way. You have just sold your home in a down market. You have held off looking for your next home until yours finally sold. After months of patience you are off on the house hunting trip you've long awaited. You can feel the excitement and your anxiety is somewhat palpable.

There it is- the home you have been eyeing from a distance is finally in site. Nobody lives there, it is just meant to be! Except for one thing, the owner of the home does not care to sell. You can't get in to the home to even see it. Trespassing you walk around the exterior, peering in windows. You notice the power is out and your dream home is slowly being abused by a lack of attention. The basement is getting wet, the grass is growing, the paint is beginning to peel.

This is frustrating to say the least. I have clients that want to buy homes that are sitting empty. See, in Indiana we own homes. Even if you have a mortgage on the property, you own your home. If you don't pay your mortgage payments the bank may have to start foreclosure proceedings followed by the actual foreclosure or sheriffs sale. I have known people who have lived in their home for 12 months without paying a payment and moving out just prior to the sheriffs sale.

Potential buyers cannot buy your home unless you, the homeowner, allow them to see the property and they submit to you an offer to purchase. Many folks going through the foreclosure process feel like the house of cards is falling in all around them. They don't want to face the facts or do anything to save their credit. They feel that there really is nothing they can do to help themselves.

Now, I don't claim to have all the answers. I do feel that if you are facing foreclosure you should do anything you can do to sell your home. Communication is the KEY!!! Talk with potential buyers, enlist an active real estate professional to help. Don't forget that our services are free to you as a seller anyway. You might not be able to save your home but you may be able to save your credit and place yourself in a good position to be able to purchase another home in a year. If you foreclose you won't be able to consider it for about 7 years.

Americans See 18% of Wealth Vanish - REALLY?

In a rash of further good news, S. Mitra Kalita with the Wall Street Journal helped bolster consumer confidence by breaking the "country is broke" story again. This breaking news was coupled with a heart wrenching story of a mom who had to tell her son he could not shop at Abercrombie & Fitch. Really?

Come on. We know already. We know.....

Now this has hit home -NO Abercrombie - this is the proverbial straw!

All joking aside - I marinate in this swell stew of pessimism every day. I'm tired and really need to let it out. Stop reporting the reported, let's proactively report optimisim. Let's try and focus our investments in solid value and quality backed products made in America . And finally, let's provide for and enjoy the blessings we've been given.

Buy a quality home with more land. Buy a home with Brick in a good location. More than anything lets take responsibility for our commitments and restore the American pride and will that we experienced briefly in 2001 and occasionally before each little league baseball game.