Low Interest Rates Fuel Housing Boom - WLOX.com - The News for South Mississippi

06/27/05

Low Interest Rates Fuel Housing Boom

South Mississippi home builders are all smiles this summer. A strong coast economy and low interest rates are driving a residential building boom.

Not even the fastest nail guns can keep pace with the demand for new homes this summer. The crew from K&S Construction has all the home building work it can handle.

"We get a lot of calls from individuals wanting us to build houses for them. But we're so busy with contractors that we can't even take them," said company owner Glenn Emerson.

For K&S Construction, this summer is on it's way to surpassing the busy season of a year ago. Demand is peaking, along with the temperature.

"Unfortunately, yeah. The summer's usually the busiest time. The hottest time of the year. And we are very busy," said worker Greg Ankerson.

Annie Martin is showing model homes to plenty of potential buyers this summer. Low interest rates are convincing many customers it's the right time to invest in a new home.

"With the lower interest rates, people can buy a bigger house for less money. So those people who were on the brink of being able to come into a house, can now purchase a home," said Martin, who sells homes for "Infinity Homes".

Home builders told WLOX News they're confident the market will stay strong beyond this summer. Along with favorable interest rates, coast casino construction and the condominium boom are also helping fuel the housing market in South Mississippi.

The owner of K&S construction admits the housing bubble could burst. That's why he's keeping the nail guns as busy as possible.

"We try to do good work and hope that when it does slow down, we'll still be busy," said Emerson.

The coast housing boom reflects the strong market nationwide. Across America, new home sales last month climbed to the second highest level on record.

By Steve Phillips

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