Good News, Bad News
New homes starts fell to the lowest since 1945. Several local builders have gone out of business and new homes are being foreclosed at rates I have never seen during my 30 years as a REALTOR. This is bad news for builders, construction workers, the trades, vendors and real estate agents who typically work in new home neighborhoods. The effect on small business, individuals and families is widespread.
On the other hand, while there has been a glut of new homes on the market for years, builders continued to build on speculation, hoping for a buyer. It was obvious that there were more new homes than potential buyers and builders were competing for a few buyers. What is happening now in new homes is truly a market correction. It had to happen.
The benefit for a few is that qualified buyers can buy new homes for much less than they would have appraised for two years ago. The builder may not be in business and unable to come back for minor repairs under a builder warranty but, if the deal is great, a buyer can afford a handyman. All new homes are inspected by the counties throughout construction so buying a foreclosure does not mean less quality.
As the inventory of new homes declines, prices will begin to rebound. It is all about supply and demand. It will take awhile, but it will happen.
If you are a buyer, this is the time to get th emost house for your money. Buy low, sell high.
If you have questions, comments or just want to talk real estate, call me, email me or leave your comments here. I am available for a FREE buyer or seller consultation, with no obligation to buy or sell with me.
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