Thursday, November 20, 2008

Metal Roofs and Home Values

I was beginning to believe the popular press and their analysis of the current economic downturn to the point that I was researching online information concerning cooking rats. It seemed that would be all most of us would be able to afford to eat soon and I might as well get prepared. After all, driving back from San Francisco last week I heard a long-time “conservative” talk show host, who I had previously considered to be a rational thinker, exclaim with in his most authoritative and conclusive voice that the recent downturn in the economy was “conclusive proof” that “unrestricted capitalism” was an animal destined to inevitably eat its own young – or other such nonsense. He was advocating for some form of increased “government oversight” of the financial system – just like many of the talking heads on CNBC.

What seems to be lost on all of the commentators and many of those with the microphones (and I have not the slightest doubt that these high-profile voices and authors either make their money investing the savings of others, have their own investments in “the market,” or comment professionally on the goings on therein. Either way, their reputation, industry, or nest egg is their biggest concern, and often there ends their objectivity) is that the adjustment of real-estate and stock values IS A GOOD THING. This is the free market working! Why aren’t the politicos making noise about the fact that places like Southern California are witnessing dramatic increases in housing sales (66% increase this year over last)? And this with no government action - except talking?

Since any product or service or asset (roofs, houses, stocks, cars) are ONLY worth what someone is willing to pay, how in God’s name can the government do anything useful since it produces NOTHING except OVERHEAD for businesses and wage-earners? If they prop up home prices, isn’t that just the collective tax-paying citizenry pouring the fruits of its labor into artificially holding up the price of something for which demand does not actually exist? And where will this maneuver lead, except to more schemes of similar deception? The market is at work right now re-valuing many parts of the inventory of goods and service to bring them into equilibrium with demand, and that’s a very good thing.

Anyway, I can hear you asking, “What has this got to do with the price of roofs?” The answer is just this: Metal roofs – or any construction material for that matter – will find a place in the market based on value. If the consumer of roof products sees the value of metal (long life, lightweight, attractive, fire-proof, ecologically friendly, and highly resistant to winds and weather), then its place in the market is assured. Regardless of the particular price of homes today as opposed to 2 or 3 years ago.

All of that to say that all of the stuff that’s filling the headlines today will be old news tomorrow and that owners of homes are best served by a focus on purchasing products for their homes that solve problems for the long-term. We all know that the long-term is never that far in the future, and that the house that you’re occupying today will still be a desirable home 5, 10, and 20 years from now. Quality improvements today, like a metal roof, will only make your home better and safer now and in the future. Isn’t that what we’re all after?

Let those politicians and talking heads continue to spout – they won’t “fix” anything. Especially a bad roof!

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