How is the global economy affecting you?

[David Larrew]

Now that I am out on my own as a consultant and I am dealing with different companies, I just wanted to hear from others in the ArchiCAD community on how they're holding up during the current global economy "scare"...

[gpowless]

Here in Southern Ontario we are seeing "corrections" to the housing market, going from bidding for houses at 120% asking price to within 90-100% of asking price for existing. The condo markets are still selling but craziness no longer prevails. Subdivision housing is seeing its seasonal downturn while the custom home market is still pretty hot. I have many clients in the latter market who still want drawings down NOW!. In my area we are waiting for a couple of larger government projects that have already been improved that will see subdivision and custom housing markets jump 20 or 30%.

With the Bank of Canada rate down as low as 2 1/2% interest and mortgages heading towards 3-3 1/2% anyone contemplating building or buying would be wise to take advantage of a long term rate. I don't believe we have seen the interest rates this low since the 1950's.

Ah....if only they had 30 and 50 year mortgages again......

[Anonymous]

gpowless wrote:
Here in Southern Ontario...

Canada, land of the safest banks in the world (from what I've read).

[Anonymous]

Keep smiling, never let them see ya sweat.
Just like smart money buys the right stocks when the stocks are down;
The smart money buys construction when the price is down.
Although prices of materials are up, well qualified generals and subs are putting in bids that are the best I've seen in a long time.
As I tell my select, pre-qualified clients, if you know you are going to build your project, you will never find a better time than now to get highly qualified bidders that will show up promptly and do a quality job.
So far it's working.
We have been working solid, and....
Just inked another deal this last week.
Now, probably should not take any more work on till summer 09.
May now turn down $300k remodel from neighbor of previous client.
Not bragging, just the facts, so far....
Design/build
Mid Calif.
Bier

[Dwight]

Matthew wrote:
Canada, land of the safest banks in the world (from what I've read).

But be careful in the maple syrup futures market.

[Laszlo Nagy]

gpowless wrote:
With the Bank of Canada rate down as low as 2 1/2% interest and mortgages heading towards 3-3 1/2% anyone contemplating building or buying would be wise to take advantage of a long term rate. I don't believe we have seen the interest rates this low since the 1950's.

Ah....if only they had 30 and 50 year mortgages again......

FYI: Bank of Canada lowered its rate again to 2 1/4 % on Tuesday.

http://www.bank-banque-canada.ca/en/fixed-rates/2008/rate_211008.html

And this may not be the end of them. I just read the US may reduce its 1.5% rate to 1% as early as next week. If that happens, Bank of Canada and other central banks may follow suit.

[Rick Thompson]

I'm learning how to play a guitar at 59

I sell stock plans and it is basically dead. Builders are far and few between (the bulk of home building efforts), and individuals are scared. I was surprised this year was as good as it had been, until Sept. I use to send out one or two plans a day.. now.. one/two a week? Good thing my wife has squirrel genes (resulting from a stray laser beam hitting a squirrel in the window before hitting her.. what can you do).

[Dwight]

And you spend all of your own money on flammable hair tonic.

[Anonymous]

Rick
Speaking of laser beams, oh lordy, I've seen the light.
Just bought a Bosch digital laser Range Finder.
I've had cheap ones before, but this is a screamer.
Beam me up....
Oh, now world decides to buy US dollars, go figure.
And remember, 10 yrs from now you will look back, and say..
WOW I was young back then, could have done anything I wanted!
And coming up on 62, I look at 59 and think young!
Just think what the young ones say...No Worries.
Bier

[Anonymous]

Where I work we did not see any changes for a while (I work in an affluent area). Now residential projects are dropping off the face of the earth. Thank God for commercial/institutional!

[Rick Thompson]

I have a friend in CT who has been building a 33M (or so) house for a pair of investment bankers. They are in major trouble, and are in the middle of the several year project. Somehow I find some humor there as I do a lot of affordable housing:) I like to think of this as a much needed adjustment.