After Down Year, Homebuilders Optimistic for '07
Save Email Print
Updated: 11:01 PM Mar 2, 2007
After Down Year, Homebuilders Optimistic for '07
New home starts were down 30 percent in 2006. Some builders say affordability and the new GM plant will mean more new houses in 2007.
Posted: 11:00 PM Mar 2, 2007
Reporter: Tony Tagliavia
Email Address: tony.tagliavia@wilx.com
width:720 and height: 480 and picwidth: 239 and pciheight: 159
Font Size:

Amid blowing snow and the cold temperatures that come with the season, some home builders like Dave Schertzing say business is slowly warming.

"We're having a phenomenal amount of traffic in the homes, the models," Schertzing said.

Contrast that to a tough 2006 for builders: Although his condo sales grew, sales of new, single-family homes for Schertzing were down 40 percent. He wasn't alone.

"Housing starts were down about 30 percent in the Lansing region," said Doug Carr, president and CEO of the Greater Lansing Home Builders Association.

Carr says last year's slowdown left a glut of lots on the open market. That should bring their cost down.

"I think there's a lot of people looking for good prices because maybe the market right now is down a bit," Jay Wartella said.

But Wartella, who's building a home on land he owns in Leslie, isn't making a decision based on the market.

"I'm retiring this year," he said, adding that his wife retired last year. "It's time to build a home."

Builders will count on people like Wartella.

There is, however, another factor that builders hope will amount to more new homes: workers at General Motors' Lansing Delta Township plant.

"A lot of those people are living in rented apartments right now," Carr said. "And we expect that those people are going to be moving out into permament housing come spring."

Even if it's a less-than-perfect year for homebuilders, there could be economic benefit for the region. That's because a bad year for builders can be a good year for home remodelers.

"When people can't build the new home they want they remodel what they have," Jim Magnotta said.

This year, builders hope to reverse that.

"I think Michigan has gone through its correction," Schertzing said. "GM is back and running. There's no reason to look out the window with your hands in your pocket despairing."

"It's psychological," he said.

That is, Schertzing claims the market is more about mindset than the pocketbook.


wilxTV Tweets...
Here's the latest update from WILX!
    WILX Poll
    Should Police Be Allowed To Use Tasers On Suspects?

    Yes
    No


    AP Videos
    WILX.com on Demand
    News Ten Mobile
    News, Sports & Weather Information On Your Cell
    Instant Alert
    Breaking News and Weather Alerts On Your Computer
    Daily e-News
    News & Weather Updates Delivered Via Email
    WILX iWitness
    Submit Your Pics and Video
    Weather Source
    Your 24 Hour Local Weather Channel
    Twitter
    News Headlines, Short and Sweet