Posted on by Bob Ottaway

THE COST OF MONEY IS A KILLER

The big news in the economy is home sales, and sales have slowed to a more than two decades slow pace.  As your sales are tied to home sales, you will want to plan accordingly and pivot.  Here are our recommendations:

  1. TRADE DOWN:  The big residential homes are not selling, and in fact, contracts were canceled in September at an alarming pace…over 25% canceled in some markets, especially Florida.  Smaller jobs, commercial, RFPs may be the way to go.
  2. POORLY POSITIONED COMPANIES MAY CLOSE:  It’s the survival of the fittest now, so some of the competition in your market may fold.
  3. REALTORS QUITTING IN MASS:  Not only the lack of homes to sell but now the Federal Court decision in Kansas City about collusion in setting Realtor’s commission may force as many as a million Realtors to depart the industry, according to industry sources.  Check in with your contacts.  Ask how they’re doing.
  4. SEPTEMBER HIGH:  Stats now show that the cost of buying a home in September was the most expensive of this century.  October is going to be the second highest.  Good to know when you’re preparing quotes.  People expect to pay more.
  5. PIVOT.  PIVOT.  PIVOT:  Make plans now for 2024 to move into areas that will keep your staff busy and take advantage of people staying in their homes longer.  They’ll need repairs.  They’ll want upgrades.  
  6. COST OF MONEY TODAY:   This is what the Federal Reserve has done, and unfortunately, and as a business offering home services, like roofing, we’re right in its target.  The rate on the 10-year US Treasury Bond closely parallels the Prime Rate, which is the rate banks and mortgage companies add their commission to in determining their mortgage rates:
    1. 11/2023:  4.57% (has been over 5% in the past few weeks)
    2. 11/2022:  3.75%
    3. 11/2021:  1.51%

We want you to know the facts so you can plan accordingly and cash flow.  Money is expensive for anyone borrowing for a home, a car, buying new furniture or a major vacation.  People with low mortgage rates are staying put.  Onward and upward!

For more information: https://superiorhomeservicesmarketing.com/seo-for-roofers