New Home Sales at a Bargain
Many new home builders are going the extra mile to make it easier for buyers to get into a new home. Some are paying closing costs of up to $5,000. Some use help from government programs. In January, sales of new homes were up 28.9 percent from a year earlier.
Many buyers entering the market are finding fewer and fewer acceptable resale’s available in some areas. And those that are on the market at attractive prices are often snapped up by cash paying investors. For these buyers, new homes with closing cost assistance can be an attractive and affordable alternative.
What’s causing this shortage? Though all real estate is local, and every area has differences, there are three factors responsible for the shortage of existing homes for sale.
1. Some homeowners are waiting for home prices to rise further. Last year, home sales prices rose an average of about 8 percent from the year earlier. If sellers can wait three or four years, their asking price could be higher.
2. Homeowners who bought homes at 2006 prices have to build more equity before they can sell them to just break even. And this could be a while in some areas.
3. Some bank-owned homes are still not on the market. Just as homeowners are waiting for prices to rise, so are some banks.
The National Association of Realtors reports that the number of existing homes for sale fell to 1.74 million in January, the lowest number since the year 2000. It’s becoming more and more of a seller’s market in many parts of the country. Those bargains of the past few years are hard to come by and when they come on the market there’s typically multiple offers and sales are often above the listing price.
On Florida’s Treasure Coast, a number of good builders managed to acquire parcels of land at bargain prices. These homes make very attractive buys for those looking for affordable homes in Martin County, FL. Once the existing inexpensive lots are built out, prices for these new construction homes will go up considerably. This window of opportunity will not last much longer. Give me a call for new home opportunities on the Treasure Coast.
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