Are new construction prices going to rise into 2013. Yes! The number of sales is increasing and the average home price is also increasing. Builder confidence is increasing. If you are looking for a new house don't be late to the party. About 380,000 sold in September using the seasonally-adjusted method. This represents an over 25% increase from the previous year. If you have questions about purchasing a new home please contact me.
The number of new houses available is about 140,000 which is down about 9% from last year. the number of people visiting new construction sites is up.
The average sale price is a little over 290,000 which is also higher than the previous year. Builder are probably not going to go crazy producing new houses and don't want to over supply the market in a fragile recovery.
Based on inventory and sales rate the months of supply is somewhere around 4 months. The number most often reported is that a 6 month supply is a market that is in balance.
Mortgage rates are still attractive for new buyers and with all the programs available; the down payment barrier is less of a problem.
Most new home buyers still do the math of "rent vs. buy" and if you plan on staying in the area for the near future the buy decision is making more sense for more people.
If you are thinking about buying your first home or buying again; talk to a local Realtor and a local lender to get an accurate picture of the local market and what financing opportunities are available for you.
The election is almost over; just like the rest of you, I am going to miss all those political ads.
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