Frankfort IL New Homes - Inventory is moving

Home Builder with Quantum Building & Design, Inc.

Yes, the local real estate market is "slow" but we are comparing it to the BEST market of ALL TIME!  You can throw around all the statistics you want about home many % the market is down but what it really boils down to is what is happening RIGHT NOW in the local market.

Having built over 30 new custom homes in Frankfort IL in the past 4 years it is our job to know what the local market is REALLY doing. 

Here are some of our observations for the Frankfort IL new home market:

  • Traffic is pretty light - but those out looking are very serious about buying/building a new home
  • When the weather finally got better there were quite a few of the best homes that sold, most for approx 95% of the listing price.  The homes that are clean, fresh, have good ammenities and custom features are the ones selling.
  • We feel that more than 50% of the current new home inventory on the MLS are "stale" homes having been listed for 365 days or more. These homes were constructed in the "make a quick buck" boom and quite simply don't cut it. They will sell on price point only (reduced that is)
  • Most new/fresh inventory that is priced sharply is getting decent traffic and consideration.  As the stale homes get older the fresh inventory market will become even stronger as they will not be mingled with stale inventory comps.
  • The # of new foreclosures has seemed to slow over the past few months but the recent release of tax bills might make that jump a bit in the fall.  We feel that most of the foreclosure inventory falls into the "stale" category at best.  That is not to say there is not a diamond in the rough out there but the vast majority of the foreclosure inventory is not on the same playing field as the fresh inventory.
  • Building supplies are on the rise (7-10% for most) due to demand from remodeling and gas pricing pressures.  Even without damaging hurricanes the cost of constructing a new home is going up, not down.  Yes, labor margins in building a home are more competitive but that is being offset by the supplies costs and then some.
  • Vacant land prices are soft and you may see some erosion in the near future.  Specifically, if land owners bought the land on speculation and are motivated to sell you can find some deals.  This is very spotty and it just depends on who you know and/or ask.  Builders can acquire land from their builder friends quite easily so don't build a home with a builder just because he has the lot you want. More than likely anothe builder can buy that lot from the land owner an a very attractive price.

In summary we feel that is a great time to buy a home (either fresh inventory or stale inventory) as sellers are still motivated to sell.  Expect 3-5% off of list price (which more than likely has been reduced previously).  There is also no better time than the present to build a home - it's only going to cost more in the future with the increase in price of labor and building supplies.

Make sure you find a quality builder that is going to be around to back up their warranty.  Check references and rely on your gut feel.  If it's to good of a deal to be true it probably is.

Comments (6)

The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain.  It has a few simple steps of what to do now that you have joined.

If you ever have any questions, just let me know.

Troy Trumm

Jun 14, 2008 11:15 AM
Bill Kennedy
Keller Williams Greenville Upstate - Greenville, SC
Homes For Sale Greenville SC

Hey Todd!

Welcome to Active Rain!  This is a great community for learning as well as sharing.  Check out some blogs, join some groups, and enjoy.  Just be careful - it's addictive!

I look forward to reading some of your future posts.

Jun 14, 2008 01:33 PM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...


I would like to welcome you to Active Rain!

I hope to see more of your blogs in the future!

Educate us, learn from others and don't forget to have a little fun while you're at it!

Take care!

Jun 14, 2008 04:37 PM
Crystal Corr
Keller Williams Greenville Central - Simpsonville, SC

Welcome to Active Rain. I hope you will enjoy it and learn from it as much as I do! Happy Blogging.


Jun 14, 2008 04:58 PM
great post

check out some of our inventory in frankfort....we build in lighthouse pointe out in frankfort


check out



Sep 19, 2008 09:31 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain!

    Much has changed since your last visit to ActiveRain.  I encourage you to take another look at the website. 

    Surf some blogs, leave some comments.  Better yet, post a Blog.

    Best to you!

Dec 15, 2015 01:17 PM