Are Any Huntsville Builders in Danger of Going Out of Business? (Madison: sales, real estate market)

[Marc45002]

It seems that the market in Huntsville is slowing down. I have found this site to provide a pretty good monthly update.

Huntsville Real Estate: September 2008 8% Lower Than Last Month « Market Trends: Alabama Real Estate

With a potential cutback at Redstone with the change of administration, is the new home market in even more danger of a slow down? Are there certain builders that have been "talked about" failing?

A related question: Would it be better (i.e., better value) to buy a relatively new resale versus new construction?

thanks,

Marc

[Elizabeth_G]

Marc45002,
Yes, there are builders that are struggling right now, and many that are doing just fine. It is certainly a price driven market, no doubt. Some areas of Madison County are doing very well, and price range is also a determining factor. We do still have a couple of sellers markets in certain price ranges, believe it or not!
I think getting a "better deal" all depends on the price range and location. I have had buyers get great deals in both new and resale, but over $350,000 in most cases. Fall is typically slower, so that comes as no surprise. Now would be a good time to try to "snag" a deal from a builder that has had several sitting for months.
Overall, Huntsville is in much better shape than most markets.

[NicoleC]

Typically a resale (especially a newer resale, say <10 years) is a better value, unless you specifically want something the newer subs in Huntsville have, like pools and walking trails and such -- and can afford those kinds of subdivisions. Or you get a very desperate builder who needs to move a spec house, even if it's at cost.

But value, ultimately, is a very personal thing. I'd look at both to see what suits you.

[Marc45002]

Huntsville's October real estate statistics look pretty bad:

Huntsville/North Alabama Real Estate Market Sinks in October 2008 « Market Trends: Alabama Real Estate

I wonder if sales during Parade of Homes (to be booked later) might offset some of the gloom.

Marc