Void Of New Construction Brings Projected Urgency In Resales
Posted by Adrienne Dimeno | Visited 468 times, 1 so far today | Leave A Comment »
Let’s not whisper! Shout it out!
Have we really hit bottom yet? According to some Local consultants and Economist New Housing is not so attractive right now.
New housing projects do pop up every so often for some developers are positioning for a recovery.The optimism for builders is long term.
The projection of a shortage of new homes (mostly because of Traditional lenders aren’t lending) will encourage buyers to feel a sense of urgency projected by next summer’s start of rising prices. This possible upturn is sparked
by the shortage of the new homes market. The percentage 3.6%.to 3.7 %months of supply of new homes, in which is an already low inventory,then as in the past when it has dropped to 3.5% prices started to rise.
Peter Reeb, local builders consultant , feels that the perspective home buyer has only three to six months to go ahead now and buy still near the bottom.
One of the market timer’s is new construction and new permits which are at an all time low and some which includes apartments. There are a 132,000 dwelling units in form of a master plan and subdivision but less then 10% have received final approval. With this low inventory you can announce to your buyer’s to get serious or a possible increase to what they can buy today will be more tomorrow.
The National Association of REALTORS® (NAR) reported the largest jump in pending sales in nearly eight years, largely due to the $8,000 tax credit stimulus for first-time home buyers.The volume of sales in many price segments is up almost 50% for the same period.
Home prices across California increased 1.4%. Sellers should be delighted to see a slight price increase in many price segments yet buyers still benefit as homes are still priced nearly 36% below 2008 levels, according to the California Association of REALTORS®.The takeaway: sellers and buyers will find declining prices in some price ranges (high end) and accelerating prices in others (entry level up to $750,000)
