The Wall Street Journal brought some upbeat news a few Saturdays back. In Ruth Simon’s September 7 article The New New-Home Market, she reported that demand for “freshly built homes is heating up.” Both sales and prices are finally inching up. That’s great news for anyone who has been trying to sell an underwater home, because those sales are perking up, as well. If you’ve been sitting on the fence about buying a new home, you’ll want to pay close attention to the flip side of this good news coin.
The inventory of brand new homes available for sale is much lower than at its peak in July 2006. Back then, according to a U.S. Commerce Department report, there was a supply of 575,000 unsold new homes. Currently, the supply is about 144,000. That’s enough to meet less than 5 months’ demand; the National Association of Home Builders says six months is considered a balanced market.
So what does that mean to you? It’s the old law of supply and demand. As buyer demand edges up and with fewer homes available, there may be fewer price cuts, fewer incentives and maybe even longer waits for move in.
On a positive note, builders are including innovative, in-demand features in their new homes that you simply won’t find in a resale. Energy efficiency is really big. So is flexible configuration that allows you to choose your floor plan that fits your families lifestyle, for example.
The Wall Street Journal article acknowledged that credit remains tight. Our homebuyers can take advantage of our preferred lender, FBC Mortgage LLC. They’re experts at working with people to help them find the right loan and terms to fit their budgets.
So now is the perfect time to purchase a NEW home with Maronda before the old law of supply and demand raise prices back up.