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Will There Be A Shortage of New Construction?

By
Real Estate Agent with Resource One Realty, LLC

My builder, who has numerous properties listed with me, called to ask about the activity on his homes.  He calls every day.  He has some rental properties as well as new construction listed.  As I mentioned yesterday, my phone has been very active.  No one is calling about the existing homes, however.  Every scheduled showing is for new construction.  I have six showings on a new construction that has been available for almost a year.

This is a very beautiful property.  It is a split bedroom, 1,577 sq. ft. well built ranch with many amenities.   The list price is $179,900.  The issue with this home has been its proximity to a major highway less than a block away.  Why the interest all of a sudden?

I believe one of the reasons is that there is very little new construction available in that price range.  The glut is gone.  I believe eventually since no one has been building spec homes for the last year or so, we'll experience a shortage of new construction here.

There are many buyers who do not want to go through the building process or can't wait the ninty plus days it takes to complete a home yet they want new construction.

I don't know how it is in your areas but I would be interested in your comments.

Take care.

Comments (2)

Steve Graham
Inactive - Atlanta, GA

This is an interesting viewpoint. It could get to the point where there isn't too much new construction to choose from as buyers eventually buy up the inventory; and, because of the steep slow down in building new ones, the market will not be replenished. As of now, however, there seem to be plenty of new homes around here, whether builder-owned or bank-owned.

Jan 23, 2009 04:56 AM
Anonymous
Neocon

Showings are not Buyers!  Until somebody parts with their hard earned money, nothing is really going on. 

 

Looky Loos 4 Jesus!

Jan 23, 2009 08:23 AM
#2