New Home Sales on the rise in Asheville NC Susan Duncan Realtor
In case you didn’t know…..Real Estate Market is cyclical. It appears, and I am being skeptically optimistic, that we have made it through the downturn and sales are moving upward in price point and number of transactions.
In 2006 and 2007 when the market started dropping, it seemed that new home sales still prevailed. Buyers could negotiate alittle with resales and sellers were giving alittle, but in 2007, builders could still name their price and got it.
In 2008, the builders and developers were starting to feel the crunch, but they could still offer incentives; i.e. screened porch, granite countertops, in lieu of lowering their price point and they were surviving.
Then, 2009 came and the new home buyers just fizzled down to nothing. New developments starting going under and Builders were no longer building custom homes but starting to build “affordable” homes. Builders were having to let spec homes go back to the bank because of financial difficulties and they were feeling the crash of the real estate market.
TO complicate matters, the cost of building supplies has skyrocketed to the point that it is financially smarter to purchase a resale than to build with all things similar.
As I am sure you have heard, the market is making a comeback and it is coming back pretty quickly. We are seeing multiple offers on properties, and homes priced well going under contract as soon as they hit the market. This has caused the inventory to drop quickly.
As resale inventory drops, new homes become a viable option. In order for new homes to be built, land has to be sold. Hence, the ripple effect begins.
Now if we can get the banks on board to start loaning money to these builders, we would be rocking and rolling!
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