Lumber Cost On The Rise.

High Lumber Costs are about to Get Higher

If you’ve got your heart set on a new home, prepare to pay more (an average of $1,236 more according to an estimate from the National Association of Home Builders). The soaring lumber cost and widespread labor shortages are impacting the residential construction market. Lumber prices, already at record-high levels, are on their way up.

Steadily Rising Costs

Random Lengths is a subscriber-based, independent organization that provides weekly reports on wood products pricing. According to the April 28 report, the cost of oriented strand board (OSB) lumber reached 4-year highs. OSB is used extensively in residential construction. The current FOB mill composite price (the price directly from the mill, without any added freight costs) is $426. This is up $68 from the same period last year.

The report also noted that the April 28, 2017 framing lumber cost (spruce, pine, fir) was up significantly from April 28, 2016. Analysts speculate that lumber prices jumped 22% during the first quarter of 2017 based on just the anticipation of a tariff on imported lumber. Now that the tariff is a reality, prices will continue to soar for the foreseeable future.

Trump Administration Cracks Down on Canadian Imports

Lumber imported into the United States from Canada accounts for about 30% of the softwood lumber used to build U.S. houses. On April 24, 2017, the Trump administration announced new tariffs averaging 20% on those imports. This new tariff will be collected retroactively 90 days prior to April 24th. These taxes will surely increase lumber costs and, consequently, housing costs.

Analysts, builders, and lumber suppliers on both sides of the border are coming to terms with this new reality. It’s too early to accurately predict how the tax will affect long term lumber prices. One thing is certain, though. Lumber prices for the foreseeable future will increase. As they do, builders will have little choice but to pass those increases on to consumers.

Now What?

The recent tariff increase should be a reality check for potential home-buyers who have been on the fence, hoping that prices of new inventory will decline. On the contrary, the reality is that lumber costs will likely increase in the near term. How much prices will increase and how long they’ll remain elevated should become clearer in the coming months. For now, though, the sooner home buyers lock in a price, the better.

Top 5 Manufactured Home Myths

Top 5 Manufacturing Home Myths

Manufactured Home Myths BUSTED!

“Home sweet home” comes in all sizes, locations, and budgets: urban brownstones, modern high-rise apartments, suburban ranch homes, rustic farmhouses, manufactured homes … That’s right. A manufactured home is the perfect option for many. If that surprises you, you may be buying into the following common (false) manufactured home myths. So, let’s set the record straight!

Myth 1: Manufactured homes are unsafe.

Modern day (post-1994) manufactured homes must meet the same U.S. Department of Housing and Urban Development (HUD) safety standards as site built homes. That means manufactured homes meet the same construction quality, strength, and fire / wind-resistant requirements as site-built homes. In fact, manufactured homes must meet higher building-code standards than site-built homes.

Myth 2: The value of a manufactured home won’t appreciate.

As a blanket statement, that’s false. Like site-built homes, a rise or drop in value occurs on a home by home basis. Manufactured homes can drop in value, just like site built homes…but manufactured homes can also gain equity and increase in value! This is primarily true if:

  • The home’s owner also owns the land on which the home sits.
  • The house is well maintained.
  • The structure is attached to a foundation.
  • The home has been updated with additions or attached garages.

Also, location is important. Potential for a rise in home value increases with desirable land location.

Myth 3: Manufactured home communities are tacky.

It is true that you’ll find rundown “trailer parks” throughout the United States. You’ll also find rundown site-built-home subdivisions. But just as you’ll find exclusive gated communities with upscale homes, you’ll find luxurious manufactured home communities with resort-style pools, million-dollar views, and famous residents.

Myth 4: Manufactured homes all look the same.

Granite, hardwoods, gourmet kitchens with islands, fireplaces, soaking tubs, custom window treatments, spacious porches, media rooms, walk-in closets, skylights, master suites … manufactured homes have these amenities, and many more.

Myth 5: It’s tough to find financing for a manufactured home.

It’s no tougher to secure financing for a manufactured home than for a traditional home. When you finance a manufactured home as real property, VA, FHA, USDA and conventional financing is available with terms up to 30 years.

So, consider the benefits of manufactured homes. For significantly less money than you’d spend on a site-built home, you can purchase a manufactured home that has all of the amenities on your wish list. You just might get the home sweet home of your dreams.

Why Are Credit Unions Offering Loans for Manufactured Homes?

Why would credit unions be interested in offering loans for manufactured homes? The answer makes sense when you think about it.

When in the market for a new home, many people are looking to manufactured homes. They are attractive and low-cost. Lending for these factory-built dwellings is different in some ways than a traditional mortgage. According to CFED, “financing manufactured home purchases and refinances can be a viable and effective community development activity for credit unions”. Thus, more and more credit unions have stepped up to answer the call, offering lending for manufactured houses.

Credit Unions prefer helping members over making profit.

Credit Unions have a fundamental approach to building wealth by building their local community. Banks lend money near and far for the sole purpose of turning a profit on each transaction. Credit unions, however, believe that their growth depends largely on the growth of their local community. What is good for the neighborhood is good for the credit union. Thus, if manufactured houses are in demand in an area, local credit unions want to offer loan products to meet those needs.

Manufactured Home Loans meets demand for smaller home loans.

Ever since the financial crisis in 2008, consumers are demanding access to smaller, more affordable home loans. According to an article published by Wired, housing experts confess that “a family that makes $100,000 can’t afford to buy a house” in many cities. The new ‘Duty to Serve’ rule from the FHFA has allowed for more affordable originations of smaller loans. This fits perfectly for manufactured homes. Consumer demand for affordable home loan solutions now has an answer.

Manufactured Home Loans Diversify the Credit Union’s portfolio.

Although Credit Unions are not-for-profit, they also cannot operate at a loss. This means investment diversity matters to them, too. A diverse lending portfolio is the best strategy to mitigating risk and raising profits for credit unions. Manufactured home lending provides a nice alternative loan product to traditional mortgages.

 

Original Source: Triad Financial Services

The Magnificent Seven – The home that’s 7 floorplans in one!

When you’ve built homes as long as Oak Creek (45 years!), you hear a lot of common reasons for customers not falling in love with a particular model.  Often, the heart of the home is great, but the rest is just not quite right.  By the heart of the home, I’m talking about the kitchen, living room and master suite.

With the new Magnificent Seven model of Oak Creek Homes, this problem becomes a thing of the past!  You see, all seven floorplans that constitute the Magnificent Seven have the same core of kitchen, living room and master suite…literally identical.  What’s different with each is the size and additional bedroom and living room configurations.

Need a fourth bedroom?  No problem.  Need a second living area?  Gotcha covered.  You want a 3rd bath?  It ain’t nuthin’ but a thing.  And with Oak Creek’s amazing 3D touring software, you’ll feel like you’re inside of any of the seven configurations while viewing the one at your local dealership.  Call or email today and set an appointment to see the amazing new Magnificent Seven at Oak Creek Homes!

THE BUYING EXPERIENCE IS BETTER AT OAK CREEK

Sometimes when our housing consultants greet new customers, their apprehension and fear are apparent.  They are weary of interacting because they just had a terrible experience at one of our competitors.  Sadly, we are often told of hour-long inquisitions and full credit reviews before a person is even allowed to see a home.  Then, after finally reviewing the homes, a parade of salespeople and managers take turns trying to extract money from the customer, often for a home they don’t really like.  At Oak Creek, we take a very different approach…we take time to LISTEN.  We want to know what your needs are, and then we save you time by only showing you the homes that fit these needs.  Our experience is a true consultation because we work for YOU.  Tell us what your specific needs are and, if we have it, we will tell you everything you want to know.   If we don’t, we’ll shake hands and part friends.  Come try a professional approach to business at Oak Creek Homes.

WOW…I didn’t know that

If you’ve studied our website or researched online, you probably know that Oak Creek prides itself on having some of the highest resale values in the industry.  Considering that most people only keep their house for seven years before selling it, this is an important and substantial consideration when choosing the right home.  Obviously, the extra money you pocket when selling your home should be factored into the home-buying equation at the BEGINNING of the selection process, otherwise you may be comparing apples to oranges.  That being said, one must ask WHY Oak Creek is considered a better investment by most third party appraisal services and the banks who rely on them.  The answer is simple:  quality.  Oak Creek has a reputation for building the strongest, longest-lasting homes in the nation; a reputation that has taken 45 years to build.  Over time, banks and finance companies experience fewer problems with Oak Creek homes and that has led to happier customers who become more likely to pay off their loan.  The moral of this story?  Don’t let a small price difference stand in the way of a happier living experience; you’ll get it back when you decide to sell it and buy a larger, newer Oak Creek!

OAK CREEK – CELEBRATING 45 YEARS OF EXCELLENCE

Oak Creek Homes 45th Anniversary

This year marks the 45th year of Oak Creek’s storied history, and we couldn’t be more proud.  Starting as a single retail dealership in Pasadena, Texas in 1971, Oak Creek has grown to include 19 dealerships, 3 manufacturing facilities, a mortgage company and a very successful insurance company.  We’ve lead the way in home design by being Texas’ first high volume modular builder and we’ve always prided ourselves in being the most technologically advanced business in the industry.  What we are most proud of, though, is the thousands of homeowners we’ve been able to help through the year.  In all, over 53,000 families have chosen Oak Creek to build their dream home and for that we would like to take a moment and say THANK YOU.  We hope that the next 45 years provide us continued success.  We know our commitment to providing great value and service has never been stronger.

Recent Flooding Update

I’m sure you’ve heard of the tragic flooding in South Louisiana over the past several weeks.  Some estimates show 60,000 people without adequate housing, many of whom must completely rebuild their lives due the total loss of their homes.  On August 19th, FEMA contacted all approved manufacturers of FEMA emergency housing (including Oak Creek) to solicit their assistance in responding to the crisis.

 Though we are proud to assist in these times of need (and proud to be one of the manufacturers that FEMA trusts with their housing needs), we are also concerned about our commitments to those in unaffected areas who are in the process of making a housing change.  Though we will continue to build non-emergency housing for our regular customers, the amount of time it will take to do deliver special order homes will grow substantially.  Furthermore, storms like these always create exaggerated demand for building materials, causing home prices to increase. 

There is still a short window for ordering your home before demand accelerates and prices increase.  In an effort to keep your housing change on schedule and in budget, we can either provide you display models for immediate purchase or lock in pricing on special order homes if sales are initiated by September 15th. Give us a call to discuss your housing plans.

What’s Up with the Deep Stock Model Discounts?

Oak Creek Clearance Homes

If you’ve seen the list of stock models currently featured on Oak Creek’s website as well as the individual dealer sites (if not, check them out!).  Why are these homes so much cheaper?  Is something wrong with them?  Do they not have the normal warranty?  Well, there’s a lot of reasons to discount stock models, namely that Oak Creek constantly updates its decors, options and floorplans to keep up with popular tastes and styles.  Does this mean that a discounted stock model doesn’t come with the commitment for service that Oak Creek is famous for?  No way!  All stock models come with the same warranties and Home Service Protection (if applicable) that are the hallmarks of our homes.  So why the big discounts?  Because these homes often show the minor wear typical of being used as a model home.  You may see the occasional scratch or carpet wear, but the discounts traded for these shortcoming typically far outweigh the negatives.  Please take a look at our clearance homes by clicking HERE.

Have You Seen Our 3D Tours?

So you want to tour our houses but you just don’t have the time?  No problem.  Just click here and take a look at one of our 3 dimensional home tours.  You’ll be able to get an overview of our floorplans and click anywhere in it to see the interior of a particular part of the house.  From there, you can navigate to multiple points in any room (even closets) and get a full 360-degree perspective using your mouse or keyboard.

Navigation is a breeze as you move from room to room and get the truest interpretation possible of our houses without leaving your computer screen.  You’ll find this is a great way to view the various décor choices and option packages we have available as we’ve done our best to include different ensembles across our home offerings.  Furthermore, you will be able to narrow down your home selections before visiting your local home center, saving you time and confusion.

Unlike our competition, Oak Creek goes to great effort and expense to make sure virtually all our homes offer this online experience.  We hope you take advantage of this great new technology!