New Construction vs. Short Sales and Foreclosures
20. Jul, 2009 
1 Comment
RISMEDIA, July 20, 2009-(MarketWatch)- New construction of U.S. houses expanded for the second straight month in June after hitting a record low in April, the Commerce Department estimated Friday.
Starts rose 3.6% in June to a seasonally adjusted 582,000 annualized units stronger than the 531,000 pace expected by economists surveyed by MarketWatch. This is the highest level of starts since last November.
Starts of new single-family homes rose by 14.4% to 470,000 in June, while starts of large apartment units fell 29.4% to 101,000. Building permits, a leading indicator of housing construction, rose 8.7% to a seasonally adjusted annual rate of 563,000. This is the highest level of permits since December.
Coach’s Question: Are you helping your buyers take advantage of new construction inventory that is on the market right now?
Today many buyers want to only look at short sales and bank foreclosures when they begin their search. There are some fantastic deals on new construction though that shoud be brought to their attention. Did you know that right now many builders are offering to:
- pay your buyer’s closing costs;
- match the federal tax credit in the form of a price reduction;
- include upgrades to the home that are usually out of pocket expenses after a home-owner moves in;
- buy the interest rate down to well below the low levels they are already at thus reducing your buyer’s monthly payment
Your buyer that is interested only in short sales and bank-owned properties may end up waiting the same amount of time to close on the property as it would take to build a new home with the benefits I mentioned above. Take some time today to search through the MLS and find different new construction projects that match your client’s needs. I think you’ll be surprised at how many opportunities are out there for them that they just have not considered.
Make it a great day!
Coach Dan
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Great comment! New construction offers many options and you avoid the frustrations of a short sale.