BIG SURGE IN NEW HOUSING COULD
MEAN LOW PRICES MAY END SOON.

A dramatic upswing in new housing starts and the threat of possible
inflation mean savvy buyers have been taking advantage of all-time low
building affordability index. New home buyers may be looking at their
last opportunity to take advantage of the rare combination of low
interest rates and low construction costs. Suppressed costs for new
construction materials and labor may surge ahead soon as we see housing
starts picking up. Recent housing reports show a surge in starts
nationally of a whopping 22.2%, the largest jump since January, 1990.

With a turnaround in housing stocks supported by an improving stock
market, some national suppliers of new housing components may look to
increase prices that have been artificially held down, in order to
recoup lost increases over the previous 24 months. This is coupled with
the fact that many financial experts are projecting that our economy may
go into an inflationary mode due to the huge influx of newly printed
money that the federal government provided in the past 6 months of
bail-outs. When banks and other recipients of these funds finally
inject them into the economy, there will be pressure toward inflation
will be strong. That means that the new home you buy this year could
see a healthy increase in value next year due to the combination of a
rebound in suppressed building costs, and the effects of inflation. The
good news is that a new home is usually one of the most effective ways
to ride the inflationary waves of the economy.

Historically, new homes have outpaced just about every other investment
available to Americans, and have also held their value better than older
homes, or the stock market. There may be no better time to take
advantage of the great buying opportunity that exists right now.

Additionally, the Federal government has offered an $8000 tax credit for
new home buyers, which effectively puts $8000 back into the pockets of
first-time home buyers, if occupancy occurs prior to December 1, 2009.
Those buyers that hope to take advantage of this healthy bonus, realize
that they need to get their new home in the ground very soon.

Many local builders have had a strong influx of new building interest in
recent weeks. Jeff Horwath, president of Jeff Horwath Family Builders,
said, "We've been very busy in the past 5 weeks pricing and drawing
houses for new customers that are excited about the opportunities. In
fact we've had more brand new prospects and been busier helping people
this year than we were in any of the previous 3 years during this same
time period. That makes us very encouraged about the year in front of
us. Just as with the stock market, people often miss out on the best
buying opportunities, because they can't see into the crystal ball.
But, from where we sit, now is the time to get going, and it seems that
in the last month or more, many people have finally figured that out and
jumped to take advantage of great house and lot prices and low interest
rates that might be gone before long."

Seems like the light at the end of the tunnel may be coming faster than
we thought. That's good news for everyone who take advantage of it.