Dear Members,
My car is muddy and I’m giddy cause it rained. It has seemed like months of perfect construction weather, so the long sprinkle was very welcome. But it was hardly enough to wet the fields just make the road muddy.
I checked the interest which changed today (and changed yesterday too). Over 7% on some thirty-year NIFA mortgage products. Well, my first mortgage was 7+% in 1979. My next house I built myself on a 12% construction loan which as I recall I rolled into the permanent mortgage. And how many times I’ve refinanced. I guess I’m back to advocating that strategy.
I’m looking back on as the highlights of my second time as HBAL president. We have a pro-housing and particularly pro-low-income housing City Council. We need infrastructure which will support more lots but there is little money at the City to put in the infrastructure. I sat down for a drink with my friend, an underground contractor. He said he is 18 months out to get plastic pipe and concrete is going up 25% soon. I had three drinks. Cost of infrastructure is outta sight. The price of drinks is up too.
Thank the pandemic and war in Ukraine for inflation and supply disruption. Our industry makes predicting prices nuts. As I’ve said before demand for housing is strong – ability to buy weak.
Hey, thankfully we’re in Lincoln so far, we have modest pricing. I was in a meeting this morning with a multifamily builder from the northwest (Oregon) complaining of $200,000/door entitlement costs. He had to be puffing and he certainly was whining. I have heard Lincoln is a market “most prone” to home price increase over the next few years. Let’s not follow the coasts or southeast. I whine enough without more governmental cost to housing development (40.6% of the cost of multifamily development according to NAHB).
Donate to Santa Cop. Recruit a new member. And come to the Christmas party.
Until next month.