Vancouver WA Real Estate | Status of New Homes For Sale in 2010
One of the Vancouver WA real estate sectors taking the worst hit from the great recession has been new home construction, and the sale of these new homes. In both 2007 and 2008 New Vancouver WA Homes accounted for approximately 15.5% of all stick-built homes sold. However, in 2009 that relative percentage of all homes sold dropped to less than 12%. In nominal terms, 924 new homes were sold in 2007; with only 587 new homes sold in 2009 -- a reduction of 337 homes per year!
Another metric to discuss relative to Vancouver new home sales is what happened to the median price for these homes? From MLS historical data we are calculating an approximate median sales price of $350,550 for new homes sold in 2007. In 2009 that same number became $232,750 -- a 33.6% reduction! We won't calculate with precision the elements contributing to the lower median price however, in our opinion the main causes are: 1) a large number of higher-priced homes took a drubbing; 2) short sales and foreclosures of new homes caused lowered prices; 3) home values fell in general.
With six months of business in the books for 2010 we've taken a look at the current state of sales for new homes in Vancouver and here's what the numbers show us: 302 New homes have been sold with a median sales price of approximately $247,500. On the face of it we have a few more sales in 2010 than in 2009 but not by many; and the relative percentage of new homes to total homes sold is slightly less than last year at 11.4% However, the median price has increased 6%+!
Financing for new homes has also become more of a challenge for builders and new home buyers. Loans for homes to be built on spec don't seem to exist these days. Larry Harris, a mortgage officer at TwinStar Credit Union, is reporting he's had more new construction loans for buyers than he has had in the past 8 years. These loans require 20% or more down on the part of the borrower however, they allow the lot to be purchased and the builder to build the home.
With only 6 months of real estate data to work with it may be too early to tell how healthy the new construction segment will be at the end of 2010. What we have observed personally is that there are slightly fewer entry-level home builders active; and more of the higher-end home builders are missing. The builders left to do the work are indeed active this season with entry level, mid-level and high-end new homes being built. With interest rates so low; and lot prices at a much lower level, we expect the new home sales numbers for the last half of 2010 to be in the 400+- range.
If a New home is something you are interested in learning more about, please contact us and we'll go over the many excellent options that are available in the Vancouver Washington area today!
Visit our website to learn more about Vancouver WA Homes, Camas WA Homes For Sale, and what this part of the Pacific Northwest has to offer!
Comments(0)