What should a builder build in your market, what are the inventory shortages

By
Real Estate Agent with Coldwell Banker Kittitas Valley Realty

 

What is the price point of sales in your market?  What inventory would sell in your market?  If you were to recommend to a builder the size, style and price of a home they should build in your market, what would that look like?

                                                                        

In my market the average price of an active listing is 339,000.  The average sale price of a home in my market is 210,000.  There is a shortage of inventory in the lower price range where sales are occurring.  Sales in the price range of the average active home (over 300,000) are very slow. 

Based on what is selling and level of inventory, I would recommend to a builder to consider a home with smaller square footage and fewer amenities such as granite and tile in order to meet the needs of the market.

                                     

I believe in the current climate buyers would consider a smaller, more basic home which may be up-gradable in the future, over a dressed-up home with thousands of dollars of fancy finishes.  In this market I believe items such as expensive carpet, bronze rubbed fixtures and granite counters are not as important as price.  Price is driving the market and buyers may be willing to accept a more basic home which meets their price.  Formica countertops and vinyl flooring served well for years, and it is possible they may be making resurgence in the future.

                                                                             

                                                                                             

Posted by

Dean Curtis Associate Broker, GRI, ABR 

 Coldwell Banker Kittitas Valley Realty - Ellensburg, Washington

                                                                                              

 

Comments (6)

Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Dean...

In our market in Coweta County GA hoses $130K and under will sell promptly!

Sep 30, 2009 05:52 AM
Dean Curtis
Coldwell Banker Kittitas Valley Realty - Ellensburg, WA

Richard,  this is what my market is showing.  The lower price, entry level home will sell in a very short period. 

Sep 30, 2009 06:44 AM
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

Any builder in our market who builds ANYTHING, will likely go bankrupt.  All construction has ceased.

Sep 30, 2009 07:26 AM
Dean Curtis
Coldwell Banker Kittitas Valley Realty - Ellensburg, WA

Tom,

I find that so interesting.  With lumber prices low and sub-contractors available, some building has been occurring where I live.  That is indeed why I ask the question.  That is why I feel it is vitally important to build to the right market. Some new construction in the upper end range have seen hundreds of days on market.  That will eat you alive as a builder.

Sep 30, 2009 07:33 AM
Brian Griffis
Realty Choice - Springfield, MO

Sorry to hear your market is so bad too Tom.  I still see most new houses close to $100,000 selling before they are finished, even in this market.  I would recommend builders in any area build smaller, more energy efficient houses that are built for modern living.   

Oct 03, 2009 06:51 AM
Dean Curtis
Coldwell Banker Kittitas Valley Realty - Ellensburg, WA

Brian,

I agree with your assessment  "build smaller, more energy efficient houses".  People, in this era, do not all need huge square footage, energy efficiency is important to keep energy costs down.

 

Oct 03, 2009 07:42 AM