New construction sets the pace in real estate. No one is expected to pay more for something used when that product can be purchased "new" for less money. Remember that important detail. It reminds us of the importance of new construction in the process of this real estate market regaining stability.
I'm noticing a few new subdivisions in surrounding areas now being marketed. These were, previously, approved tracts of land owned by developers who were waiting for the market to change. This is a good sign of some confidence in our local real estate market. It's a gentle use of the word "confidence!!"
The problem that I'm also noticing is that the builders are not building a spec home or model home for their agents to show and sell. Now the fun begins!!! My team and I have had plenty of experience with preselling homes, and it's a difficult task if one does not have a thorough knowledge of construction. Those listing agents will be showing dirt to sell a colonial home!! That's what we do best!!!
The resale listing inventory is reducing in size and that makes the competition less for new homes. Builders are feeling more confident but not enough to spec homes. They see light at the end of the tunnel but they need assurance before they spend any money. The climb will be a slow process, but we're moving in the right direction.
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