If you are a buyer looking for a brand new home in Newburgh NY, you have probably been having a difficult time. There is very little inventory of homes currently available that are actually in the process of being built. Very few make it past the beginning stages before going under contract. The trend lately is that once they are complete, these new construction homes are already sold.
My builders are running out of building lots and buyers are looking to purchase homes. Many land owners took their parcels off the market when the bubble burst. They are “waiting” for things to get better. Question is how long before those numbers will return to where they once were? It could be a while. Although I am seeing more buyers and inventory is shrinking, the prices are not soaring as they did a while ago. It could take quite a while to get anywhere near those inflated prices. Building lots went as high as $130K to $150K for a simple bilevel home. Prices of land from the bubble would result in a builder losing money on each and every home. In 2005 bilevel homes were selling for $350K and up with few amenities at all. Now the same home, only fully loaded, would sell at around $300K on a desirable lot. It will take quite a while for the price of land to reflect those higher numbers.
That leaves me with the quest to find land owners that are willing to sell at the current market value. While waiting until the price of land goes up the owners still pay taxes and do not get any return on their investments. If they are looking to sell, the market value is all that a builder can pay. Few retail buyers are willing to pay top dollar for a lot as they can work with a builder to negotiate a better deal for their new home on a lot than paying individually for it. This is something that has been hard to convey to land owners. Sell now at market value or wait ten years for the potential to sell at a higher price. I guess it is a matter of whether or not there is a financial need and or the ability to wait and continue to pay taxes on the property. I have buyers for buildable land. Builders willing to buy these lots are able to pay in cash and would move forward quickly.
If you own land and wonder what it is worth give me a call. I can help you with that information. Together we can work to get you top current market value for your land. Do you really want to pay taxes again next year? Call me or sign up herefor more information.