Are New Homes Selling?

By
Real Estate Agent with America's Network Realty Group, Inc

Are New Homes Selling?

While the real estate market has been struggling, the once highly desired new home has taken a back seat in the minds of the consumers. The foreclosures, fixer-uppers and short sales seem tantalizing to today’s homebuyers.

The existing home sales are down about 3 percent in the last year (latest data from the National Association of Realtors). However, according to the US Census new home sales have fallen 28 percent. New homes are currently more expense than the existing homes, as many of the existing homes are selling at deep discounts. These discounted homes accounted for 40 percent of the sales in February of this year.  

The mindset of the consumer has changed also. During the boom years the consumer was more interested in top of the line appliances, expensive counter tops, and abundant square footage. Today’s consumer has become more cost conscious, and is looking at homes that are less expensive to heat and cool, and homes closer to the city, to cut down on gasoline costs.

There is a bright side to the story. There are some builders who are offering these new homes at cost, as their builder loans are coming due and they choose not to default on the loans. This is not widespread, but a consumer could luck out and obtain a brand new home at a great price.

 

Ref:SmartMoney.com 3/31/2011

Posted by

Susan Jackson, Associate Broker

Americas Network Realty Group, Inc

1532 Dunwoody Village Parkway

Atlanta, Georgia 30338

Office: 770-551-5850     Direct: 770-551-5852   Fax: 770-551-5866

Email: sjacksonhomes@gmail.com

Website: www.kstrealty.com

Americas Network Realty Group, Inc

Comments (4)

Kim Inman
Mountains to Lakes Real Estate, Inc. - Harriman, TN
CRS, Broker/Owner

Susan...I agree with you. I think buyers are being very careful and weighing all costs in purchasing and maintaining a home.  I've seen several new constructions locally that have sold for a tremendous reduction after they've been foreclosed on.

May 03, 2011 08:50 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Susan, Our New Home Sales were down just like you said. They are finally starting to pick though. That's here anyway.

May 03, 2011 08:59 AM
Susan Jackson
America's Network Realty Group, Inc - Sandy Springs, GA

Hi Kim and Connie,

Also what has been happening is: the builder defaults on the loan and has not completed the house, the bank forecloses and has to finish the house.

May 04, 2011 11:30 AM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Susan:  New homes in the Fort Worth/Dallas market are still selling briskly.  One new home salesperson who I work with quite often had eight sales for April and six for March.  Needless to say, he is absolutely thrilled.  By the way... the price range is under $160,000.  Most of the buyers are first-time homebuyers.  This is good news.

May 05, 2011 02:08 PM