I love this article from Barbara talking about the increasing strength of the residential real estate market. The builders are back. Home sales are increasing.
Lots of reason for optimism.
As the residential resale market continues to gain strength, the new construction arena is feeling its oats. Builders are building homes on speculation and buyers are purchasing them before the homes are finished. Do I dare think the market has turned? Are builders experiencing a false sense of confidence?
I remember the days of selling a new home and raising the price on the next home by $10,000. This process would continue with every sale. The tenth home was paying $100,000 more than home #1. The word aggressive comes to mind here. That’s what listing new construction was like in 2006 in Franklin MA. The builder came to work every day with a big smile on his face. He knew if I sold a home, there would be an additional $10,000 in his bottom line.
How life changed within the next couple of years. Those memories still exist, but what most builders think about is the most recent change in the market. That change was one that required the builders to drop their prices in excess of $100,000. After dropping the prices, they sat stagnantly for a long period of time. They were all dead in the water.
So, here we are, hearing nail guns at 7:00 am and scheduling showings after the subs have finished for the day. I can’t help but think we need to continue to think positively and capture as much business as possible, just in case this surge is a temporary situation. It’s difficult to forget those tough times!!
Copyright © 2011 The Kuney-Todaro Team - All Rights Reserved
Visit Our Other Sites:
NewConstructionFranklinMA.com | FranklinMAHomeSales.com | FranklinMANewHomes.com
Hi Nikesh....thank you for the reblog....I always appreciate that....
Nikesh~ I also do new construction sales.. and the current builders are building homes with way more value for those buyers these days...At least compared to the surge in 2005... now they get a completed home with many upgrades compared to that time.. A great day for buyers... add in low interest rates, new energy codes and bingo.. new homes over resales are the way to go!!..
I'll visit Barbara too..=)
Nikesh, we sell new construction too, and it is most definitely picking back up in the Louisville area. That is why I am stepping up my new construction blogs!
Hey Barbara... I thank Nikesh too, because I missed you the first time around... I sure hope we start to hear those nail guns soon... Have a great day!
My ears see and hear sounds of nail guns, cement trucks and see new roofs being installed. Yhea!
Nikish - new construction is a sure sign that the recovery is taking hold ..... from where I sit another sure sign is the number of positive posts here in the rain and the decreasing number of REO and forclosure posts