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Will the real estate slowdown effect the greens industry ?

Discussion in 'General Industry Discussions' started by Mdirrigation, Aug 24, 2006.

  1. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,631

    Now that intrest rates are rising and home sales are slowing up . How do you think it will play on the greens industry .
  2. Brendan Smith

    Brendan Smith LawnSite Bronze Member
    Posts: 1,196

    i have good relationships with several builders and i do fair amount of new construction. it has not impacted me yet, but i think it will eventually. even so, the bulk of my business is residential, so i'm not too worried.
  3. LindblomRJ

    LindblomRJ LawnSite Silver Member
    Posts: 2,570

    I think it might effect regions at first. New installs might be slow down. I wish a had a crystal ball to tell.
  4. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 802

    I'm smilin when a customer signs up for service "untill it sells".
  5. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,631

    But whats been fueling the last 5 years of growth has beed home equity loans , and cash out re financing . As the rates rise , and home prices flatten or drop so does discressionary income. The 90s were tight years will it happen again?
  6. KINGjosh

    KINGjosh LawnSite Senior Member
    Posts: 531

    Thats a good question indeed. But I have no clue.
  7. Dirty Water

    Dirty Water LawnSite Fanatic
    Posts: 6,799

    There are going to be lots and lots of foreclosures.

    People have been taking out 60 year loans to afford million dollar houses here when they can't really afford a $200k house. Now that interest rates are rising, homes are going to be foreclosed on left and right.

    Personally, I might try to buy one or two :laugh:

    TURFLORD LawnSite Senior Member
    Posts: 834

    The Fed kept the rates the same the other week. I do primarily maintenance. When a home sells, chances are I'll still cut the grass for the new people but not any other service such as apps,trimming, or clean-ups. Buisness is good. Hopefully now that things are stabilizing I'll be able to sell more to the new people.
  9. subs1000w

    subs1000w LawnSite Member
    Posts: 160

    60 year loans wow i didnt even know such a thing existed, some people have absolutly no common sence
  10. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    60 year loans are also a new one on me. 30 year RV and 15 year car & boat loans though, have become a tool for the gotta-be-a-pimp-right-now crowd along with interest only jumbo loans. Risky bet based on the belief that property values will rise faster than the interest and equity will become available in a short enough period to refinance or move and grab an overall gain, but gamblers will always be gamblers. Will installs slow? Maybe, maybe not. New construction will likley slow, but that is usually followed by an increase in remods as people staying put look for an upgrade. The savvy company will shift with the changes and be fine.

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