Builders and consumers are both making adjustments to the way they are dealing with the economic downturn and the hesitancy in buying homes.

Calgary Herald ArchiveDespite high consumer interest, buyer hesitation due to the economy is stalling the building process. Builders are adjusting their product lines and prices.

“People are reluctant to buy right now,” says Dave Hooge, general manager of Stepper Custom Homes. “They’re worried about their jobs, the stock market declines, lower evaluations on their existing homes and about selling them — there’s no one fear.”

Traffic is up at show homes, so there is consumer interest, he says. But people are still delaying signing the dotted line that will start the whole building process.

“Because everybody has their own concerns, we have to deal with them on a case-by-case basis, talking with them about how we might be able to address the concerns,” says Hooge from the company’s northwest Calgary office.

And it’s been a learning process for Stepper and other builders.

“People who may have been looking for large single-family homes have now lowered their expectations and are looking at something smaller,” says Hooge.

That has meant the company has had to review its stable of floor plans and make some adjustments to its product line. And, Hooge adds, pricing is reflective of the smaller homes. “We’ve introduced new models and reintroduced some of our older ones,” he says.

The company is also taking a monthto-month approach to the construction of spec housing.
Unlike some other builders, Stepper is trying hard to avoid the at-cost price incentive other builders are using. But, Hooge admits, margins are down. “We are keeping our pencils sharp,” he says.

Stepper continues to offers its guaranteed sale program for potential purchasers concerned about selling their existing home.

As well, the company pays the real estate listing fee to help clients move along.

Hooge says it’s all part of Stepper’s attempts to maintain a high level of customer satisfaction.

“Some day this will be all over and we want people to remember us and buy a home from us,” he says.

As for what this downturn will mean to the industry and homebuyers, Hooge says there are some good points.

Construction timelines will be reduced, the quality of homes will get even better, customer satisfaction levels will improve, and industry players will be better business people.


“We’ll work through this. It will have its challenges, but we will work through this,” says Hooge.