New Homes Starts Nationwide Turn Up Ending 18 Month Slide
New Homes Starts In Prince William and Woodbridge Lead The Way
A colleague in the mortgage business sent me a note by email today. Here is a copy/paste of what he said:
The Commerce Department reported that housing starts unexpectedly jumped 22.2% in February to a seasonally adjusted annual rate of 583,000 units.
This ended the longest streak of declines in 18 years. 
Economists had anticipated a 3.4% decline to 450,000 units.
Leading the surge was an 82% increase in the building of multifamily homes - condominiums, apartments and townhouses - to 226,000 units in February from 124,000 in January. Housing starts for single-family homes rose 1.1% to 357,000 units.
Building permits for single-family homes climbed 11% in February to 373,000, compared to 336,000 in January.
So how does this story compare to Prince William County new home starts and Woodbridge new home starts?
Old news.
New homes sales in Prince William and Woodbridge dropped 2005-2008, but not very much. In fact, new homes sales around the area were steady in 2008, and the trend has carried into 2009.
I make a point of visiting new homes sites to get a report from the on-site sales managers as I go about my travels around the area.
How are the builders maintaining strong sales in the area?
Builders have adjusted prices lower as surrounding market values declined. New homes that sold for $600,000 in 2005 are going for $400,000 in 2009.
"Mr. Erick! Are you saying that those greedy builders had $200,000 extra profit they could cut to lower their prices???"
No.
Builders didn't cut fat profits. The land developers that sell finished building lots to builders have cut lot 
prices to keep sales going.
Most folks don't know that builders DO NOT develop the land. Developers take raw land and develop it into finished building lots with streets, curbs, sewer and water lines, electric service, then sell those lots to builders.
By the way, over 80% of new home buyers have their own Buyer Agent (Realtor) working on their behalf to help buyers get the best value when buying a new home.
Remember, virtually all on-site sales managers are NOT Realtors, so they are not subject to rules of ethics and state regulations.
Most on-site sales managers are employees of the builder. They can say practically ANYTHING to get you to buy a home.
I've coached hundreds of families through the new home purchase process. I can show you how to avoid the ten (10) excess profit traps builders use to squeeze every dollar out of a "deal".
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Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.
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Equal Housing Opportunity
President Lyndon Johnson lead a vigorous campaign through the halls of Congress that lead to Fair Housing legislation. The Republican Party members in Congress backed Fair Housing, while most of the congressional Democrat Party members opposed Fair Housing. Johnson, a Democrat, worked the phones day and night, calling congressional Democrats, calling in favors that persuaded enough Democrats to cross party lines and vote for Fair Housing, and against their party leaders.
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