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As 2019 comes to a close and we look towards 2020,

it is a good time to review the past year and to prepare for the next.

 
 
 
 

Ask yourself:


What changes do you see coming?


Are you strategically positioned to take advantage?

 
 
 
 

Here are a few highlights that jump out at us for 2020:


  • 2020 is a presidential election year.
Elections always have a way of sparking hesitation and fear in the markets. The historical evidence is that the world will continue to turn like it always has.

  • Interest rates – where are they going?
From 2013 to 2017 interest rates were rock-steady, moving between mid-3s to rarely hitting low-4s. In 2018 they spiked to just under 5% by November. The media ran with the story that rates were only going up and that homes were unaffordable. Fearful, builders laid off staff and sold land. The Fed then unexpectedly reversed course and rates dropped back to 3.5%. We believe rates will hover between 4% and 4.5%, though interest rates are unpredictable, despite anyone’s prognostication.

  • The “Housing Crisis” and predicted return of bidding wars.
Nearly every building industry event in the last quarter of 2019 and many industry blogs and newsletter refer to the shortage of housing as a “crisis”. Demand outweighs supply at all price levels and especially at the entry level. Once again, a story is being woven that we are currently in and moving deeper into a seller’s market. We believe the opposite. Many builders are not hitting absorption goals with sales trending low on a monthly average. This could signal different market shifts that leave those buying into the story unprepared.

  • This November saw the completion of the 10-year cycle for the Regional Housing Needs Assessment “RHNA”, voted by the Southern California Association of Governments, “SCAG”.
This will affect all of Southern California except San Diego, whose own governing body “SANDAG” will finalize its numbers by 2021. The Central Valley is only a couple years after that. The numbers set forth are enormous, with many questioning if and how this is going to play out. Eyes are open to see if any good will be made on the threats from Sacramento to penalize cities by withholding vital funding, should they not comply with the numbers. This may be an opportunity for builders to grow and expand their business helping to supply the market.
 
 
 
 

In light of these points, a famous Warren Buffett quote comes to mind:

“Be fearful when others are greedy

and greedy when others are fearful”.



 
 
 
 

We know this quote speaks of great opportunity in the face of market uncertainty.

That is the sentiment we hold at Ultimate New Home Sales & Marketing Inc.

 
 
 
 

As you look back on the past year and project into the next:


  • Are your salespeople trained to represent and sell your brand’s value and always take advantage of potential market changes?
We are currently in a dynamic market in California. Unemployment is at historic lows. Wages are going up. Good people are taking advantage of better employment options. Banks are solid and loan programs continue to get better. The state is experiencing housing shortages in every sector. The industry should be experiencing a red-hot sellers’ market, but too many believe the story instead of the real data.

  • Did your buyers buy in spite of the salespeople?
If we realize the predictions of the bidding wars returning, houses may indeed “sell themselves”. It is easy for a salesperson to become a passive “order taker” when times are good, and completely ineffective when times are not. It is this false sense of security and lack of ability that breeds laziness that loses business to hungry competition and leaves money on the table when every home sale is an opportunity to maximize the purchase.

  • Did your homes close when you wanted them to?
Are lines of communication flowing smoothly – from sales to construction to options/upgrades to escrow and finance – all to facilitate hitting critical timelines?
 
 
 
 

Combined with the elite standards we train and hold our sales professionals to, we consistently outperform the market, especially in the face of doubts and fears.


 
 
 
 

Our sales professionals are active at every step of the sales process, from lead generation to close of sale.


They are trained to take advantage of every market movement and always convey the sentiment that:

 
 
 
 

Today

is the

best day

to buy

your

new home”.


Pictured left: family that purchased a few home.... just last weekend!

 
 
 
 
Last December, when many believe sales slow between Thanksgiving and the Super Bowl, we redoubled our efforts & had 16 new home sales Christmas week alone, while major publics only closed 1 or 2.



We are ready to help you

seize the unique opportunity you as a builder have to answer the call for more housing,

next year and in the years ahead.


We invite you to schedule a short meeting with us to brief your executive team on the opportunities that we see lie ahead in 2020.

​​​​​​​


Don’t take it from us.

We invite you to hear video testimonials from our builder clients at:

ultimatenewhomesales.com/testimonials

 
 
 
 


Make 2020 your best year ever!


Steve Kaller - President

Jeff Musial & J. Kay Shin - Business Development 

Ultimate New Homes Sales and Marketing, Inc.

 
 
Contact Ultimate Now!
 
 
 
 
 

About Ultimate New Home Sales & Marketing, Inc:

 
 
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Ultimate New Home Sales & Marketing Inc.  |  Corporate Office: 1205 N. Tustin Ave, Anaheim CA 92807
714.632.7444  |  ultimatenews@unhs.com  |  www.UltimateNewHomeSales.com  |   DRE# 01194822
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