I just read an article on CNNMoney.com about new home sales dropping nationally and it piqued my curiosity. The main contributing factor seems to be the overabundance of new home inventory, which I have seen here in the Edmond Real Estate market. However, we're not seeing the doom & gloom that the national media loves to tout. What we've seen so far is simply a slow-down in new home purchases (attributed mostly to the time of year, I believe), not a bursting of any bubble or a decline in pricing. Existing home sales have seen a slight decline in values but no big drops. The only thing that worries me a little bit in our market is that the builders, who are already heavy in inventory, are still building like it's 2005. The positives are that our cost of living is still one the nation's lowest, which continues to drive our local industry. So, what I'm curious about is what my fellow Rainers are seeing in their markets. I'm looking forward to hearing from you all!
Lenexa, KS
Being from Kansas City, our market is probably similiar to yours. Kansas City is different from other communitites in that we have 100's of small time builders and very few corporate builders. In the last few years, a builder could raise prices every month and still sell homes. There were plenty of buyers out there and the builders did not have to negotiate. Now with the current market, they have had to change strategies. It has actually been good for my business, because I have been able to help with rate buy downs and other special programs to help sell new construction homes. Also, in the past if a poor lender dropped the ball, builders and sales agents didn't care as much, because another buyer would come along for purchase (probably with an increase in sales price.) Now every deal is vital and our good lending practices and customer service is more valued.
Feb 28, 2007 05:15 AM
405home @ ERA Courtyard - Edmond, OK
Realtor, Team Lead
Jon, I think you're right. It does sound like we have some similarities in our markets. The builders around here are having to re-think their marketing strategies but really that happens every year through the winter months. They certainly have more standing inventory now than this time last year though. Thanks for the input!
Feb 28, 2007 01:23 PM
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
Oh Ryan! I am so tired and knew I was nearing the end of catching up on posts and here you are drawing me in!
Our builder inventory is dwindling and near gone. We were seeing a 2 week increase in pending and then we have seen a slight slowdown. Foreclosure listings have DOUBLED and almost tripled in less than whenever-I-did-my-last-economic report which was three weeks ago?!?!
Hard tellin Ryan. I thought we were on the up and up and I am slightly concerned about the subprime market and how many people will not be able to buy houses because of it. Who knows what tomorrow will bring, another slight shift?
Feb 28, 2007 03:25 PM
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer
405home @ ERA Courtyard - Edmond, OK
Realtor, Team Lead
Renee, you actually catch up on all the posts every day? I did that for a while but with as many posts as we have now, there's just no way for me to see them all. I'm sure I'm missing some great stuff! Yes, we've seen a rise in foreclosures also and I've been worried for some time about the effects that will have overall, but for now, our buying market is still strong. We just need the inventory to dwindle to get us back to where we were. It'll be interesting to see what the next few months bring.
Oh, BTW, YES, Sooner born and Sooner bred! ;)
Mar 01, 2007 01:20 AM
Rainmaker
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Ryan Hukill - Edmond
Realtor, Team Lead
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