What to look for at the start of a building slump.

I lifted this from Daft

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Re: Talking To A Builder
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Author: Frack
Date: Friday October 12 @03:58PM
Comments:
I’ve been in the building game for 30 years or so and have seen three building slumps in the 70’s, 80’s and 90’s (anyone see a pattern here), two in the UK one in Germany, the same things have happened prior to the downturn in all cases so if you really want to know if the housing market is heading for a dive look out for some of these:

Developers finishing the houses at the front of a site and moth balling the ones to the rear.

Big sites with few workers

New houses being sold with curtains, carpets, white goods you name it, inclusive in the price.

Deposit paid, trade in your old property, move in for a hundred (insert currency here)

Decrease in foreign workforce (this happens surprisingly late as they delude themselves it will all come good in the end, they normally have to walk home!)

Rise in displaced indigenous workforce.

Non or very slow payment to workforce/ sub contractor or builder.

Lastly the Government gets involved in some way to make it look like they care about the situation, quickly finding a scapegoat to blame, i.e. the EU, USA, monetary fund, greedy developers, banks or just about anyone as long as it’s not themselves!

OK I can checkoff what I am seeing so far…

Developers finishing the houses at the front of a site and moth balling the ones to the rear. http://texastreasure.info/images/checkmark.gif

Big sites with few workers http://texastreasure.info/images/checkmark.gif

New houses being sold with curtains, carpets, white goods you name it, inclusive in the price. http://texastreasure.info/images/checkmark.gif

Deposit paid, trade in your old property, move in for a hundred (insert currency here) http://www.amerihost.com/images/checkmark_x.gif

Decrease in foreign workforce (this happens surprisingly late as they delude themselves it will all come good in the end, they normally have to walk home!) http://www.amerihost.com/images/checkmark_x.gif

Rise in displaced indigenous workforce. http://www.amerihost.com/images/checkmark_x.gif

Non or very slow payment to workforce/ sub contractor or builder. http://texastreasure.info/images/checkmark.gif

Lastly the Government gets involved in some way to make it look like they care about the situation, quickly finding a scapegoat to blame, i.e. the EU, USA, monetary fund, greedy developers, banks or just about anyone as long as it’s not themselves! http://texastreasure.info/images/checkmark.gif