Builder's are Back, Is new better?

Originally posted on Rod's Real Estate News with Realtor® Rod, July 10th, 2015

Many home buyers may be feeling frustrated at the lack of resale inventory in the market. Here in Clark County it remains a tight seller's market. There are many buyers and they seem to be preferring that move-in ready house rather than the one that needs "TLC". The builders are back and they have come with force. Dozens of new developments are underway all over the fruited plain.

For the buyer that has to have the house just so, a new home holds an advantage in that often times the buyer can choose carpets, flooring, counter tops, colors, etc. The downside is that builders are booked solid and completion times are pushing 6-7 months. New spec homes are always and option but they lose the pick you theme angle in exchange for buy me now availability.

The general theme in new homes has been big house, tiny lot. The older homes are usually found on nice big lots with 7-8 thousand square feet and go back to the 1970s and you will likely find reasonably priced homes on 10,000 foot lots.

That remains the trade off, older homes on giant lots versus newer homes on smaller lots. In general a new house will appreciate quicker in the first 5 years. When looking at newer subdivisions consider the neighborhood and price ranger. Entry level homes will often hold up better if an HOA or strong CC&Rs exist to keep the neighborhood conforming and tidy. Generally upscale developments with large expensive homes fare well with or without an HOA.

I have written in the past that sometimes buying a brand new house in an older neighborhood can backfire. Be aware of your needs and think about the future. Buying a home is a little more "permanent" than renting and will require a bit more time commitment on the part of the purchaser.

Most new home developments list their properties on the local MLS so your favorite Realtor® can still help you find your dream home, whether it is brand new or 100 years old.

New Construction is Back...Bigtime

From Real Estate with Realtor® Rod,
By Rod Sager

From Stonebridge Homes, Ridgefield, WA

The last twelve months has seen a boom in the new home construction market here in Clark County. Builders are erecting beautiful new homes and buyers are snatching them up. The pre-crash trend of bigger homes on smaller lots continues during this post-crash recovery.

Builders are able to offset the fixed expenses of infrastructure when they can squeeze more homes into less land. This allows buyers to get a really nice home for a reasonable price. Families looking for the rancheria spread on the jumbo 1/4 acre lot will likely need to did deep into their pockets or continue working the 1970s and 80s resale market.

There are several builders that have setup shop across the county. New Traditions, AHO, Manor, Osprey, Olin, and Pyramid have been here before but we also are seeing new faces from Lennar and Stonebridge as well.

I helped a client get into a new home last month and he got a lot of house for a great price.2700 squares with nice upgraded trim and a decent sized lot at 6,000 squares for a great price of $313k. Prices are moving up though. That same floor plan is now fetching $325k in the same subdivision.

Getting in early can sometimes be a huge advantage price wise. Builders tend to increase prices as the phases of development are added in. The advantage to a phase one purchase is price, the disadvantage is the uncertainty of how the development will "feel" when built out.

New construction can sometimes soften the resale market and I think that the slower resale appreciation this year could be directly linked to the increased builder activity. That is a short term dilemma. The long term benefits associated with new construction are usually worth any short term loss. New development increases the value of real estate in the area. It aids in infrastructure improvements and provides needed local government revenue. It also aids in resale value long term.

Here in Southwest Washington, most builders list their new homes in the MLS. You can have your trusted real estate professional help you find the best value in a new home. Buyers that are trying to find a newer modern home should consider a new construction. It could be just what the doctor ordered :)