As we have been advising you for some time, the window for the best time to build in perhaps 50 years may be starting to close.

Take a look at these headlines and excerpts from Wall Street Journal articles over the past week or two.

Four take-home messages:  (1) Building costs are escalating even faster than we have been predicting.  (2) Interest rates could jump even faster and sooner than we have been predicting.  (3) Quality custom builders are becoming booked up perhaps even more quickly than we have expected. (4) The cost of extraordinary building sites and land is the lowest in a generation and can go nowhere but up.

Full E-Letter here…



“Logging Towns Are on a Roll: … underpinning much of Eugene’s rebound are soaring lumber prices. The price of framing lumber … represents a 46% jump over the past year”. This is just one of many examples of building materials going up very quickly.

“Home Prices Shoot Higher”. “Builders Fuel Home Sale Rise”. “New Home Sales Jump … highest since 2008 and biggest monthly Jump in two decades.” “Home Prices Finally Return To Normal … first time since 1997″.

These kinds of headlines mean some things with certainty: People who have wanted to move up (or down) for years are finally doing it. Either way, it sucks up supplies of materials, builders, prime lots and property, and mortgage money. And, when the supplies go down, either the price goes up, or the availability goes down, or the quality goes down, or all three.

“Warren Buffett Sees Hair Trigger When Fed Shifts Stance”. “Treasury Needs a Better Long Game … today’s low interest rates are a rare opportunity for fiscal housecleaning”. “Treasury Yields Rise After Jobs Report … the yield on the 10 year Treasury yield has increased 48% since last July” [this is the rate that most directly reflects mortgage rates]. “Preparing For The Day When Rates Rise”. “Companies Leap Into Debt Market”. “Fed Minutes Show Some Disagreement On How Long Central Bank Should Keep Buying Bonds”. “Fix Isn’t In For Housing Finance … housing can’t have its cake and eat it too”.

These kind of headlines mean one thing for certain: if a person ever wanted to borrow money, the chances of getting it this cheap is about to go away and will probably never be seen again in our lifetimes. Most people intuitively know that there’s no way for the Government to print as much money as it has over the past 5 years without interest rates eventually going up, especially with no sensible Federal budget or debt plan in sight. That can only mean one thing: higher interest rates. While, miraculously, that hasn’t happened yet, it will. Signs are everywhere that it could happen a lot more quickly than people realize. The take home message: borrow money and build a home.

Are we just preaching the same sermon? Yes, we are. But, we are preaching it with a bit more urgency and a bit more certainty. Our predictions are coming true, and the predictions are rapidly becoming fact instead of guesswork. Build now.

Full link here,

OK. Enough business. Let’s look at a couple of great recent Hearthstone projects to liven up your imagination and spirits.



Kent & Midge Merrill – East Tennessee

After careers as physician and teacher in Florida, Kent & Midge Merrill retired to a beautiful 21 acre farm with spectacular mountain views in East Tennessee. In the process of remodeling the existing home to fit their needs, they realized that having the whole family together (6 adults and 7 kids) for reunions and holidays just wasn’t going to be comfortable in the existing home.

They named the guesthouse The Cataloochee Cabin, for it’s dramatic views of the seemingly endless Unaka Mountains and the Cherokee National Forest. In the Cherokee language, Cataloochee means “wave after wave”… and that’s certainly the view off the front porch.

For immediate assistance, dial or email your Project Manager:

Chris Wood
, VP Sales, 865-368-5165

Ron White, Project Manager, 865-654-0928

Jobe Leonard, Project Manager, 865-809-4419

John Ricketson, Project Manager – Georgia Office, 478-474-9370

Scott Walker, Project Manager – Pennsylvania Office, 570-295-1083

Terry Reneau, Project Manager, 423-608-5195

Carmen Caprio, President, 865-368-5163

Also, we have many homes under construction, possibly one is in your area!


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