Be Ready For The Upturn
Published 4th September Last updated: 4th Septembert 2008

The indicators of the housing market are strong with the Supply and Demand for housing on the increase but whats missing?

With more doom and gloom from the media and the pundits, the construction industry cannot be blamed for being nervous. Market commentators expect a 10 to 15 percent drop in house prices this year with a further drop of 10 percent next year, giving a 15 to 25 percent drop over a two year period.

This is the real correction the market should have been expecting for a long time. It is however not a natural correction it is fuelled this time by the 'credit crunch'. The market is without a doubt nearing the bottom of the historical cycle and no one knows how much lower this will go, however what we do know is that the only element stopping the increase again is the availability of mortgages.

With the government recently adding a little catalyst to attempt to get the upturn started with No stamp duty below £175k and free 5 year loans of up to 30% for first time buyers, this is welcomed by all (or should be), this does not start the lending.

So how do we know when the lending starts up again? as it is this that will announce the recovery. Watch the mortgage brokers and see when their business starts to increase and we will see the first indicators of an upturn.

Are you ready?

When this upturn happens, and it will as it has always done, are you ready to capitalise on the opportunities that will no doubt be there. The cash rich business' are already pouncing on the deals getting as much as 30-40% of market value prices. As a builder and construction company you need to be ready and at least actually be arround when it happens. With many of the small builders going into liquidation making sure you are lean and ready is vital.

Now is the time if you havnt done so already to get those overheads down, be ruthless, remove the slack that always creaps into a business during the good times. Do all the background work that you never had time to do when you were busy and probably the hardest one to do is start marketing. When the upturn comes you want everyone to know you are ready and willing to start building.