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A Builder told me once the best time to buy is at the very beginning and the very end of a new Subdivision.
But new homes are selling so fast here now that no longer applies with inflation of Building costs. At least in TX the price of new homes is going up biggly and with this huge freeze a shortage of labor will make the situation only worse.
I thought that as well. But I'm not a RE agent. It may have been that way in the past, but it's a freaking seller's market so they will hold on for their price for as long as they can. I think the thought process used to be "let's sell this last unit asap and move to the next project."
Location: Danbury CT covering all of Fairfield County
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In my market, the large project raises their prices $5000 or so after they deposit on 2 homes, and the ones that are depositing now won't be ready for almost a year. Another project in my market started building large and then dramictacally receuded size when the recession came on and then finished the project with homes somewhere generally in between the 2.
The population isnt increasing that much.. lowest in history... but construction is at an all time high this century. Just keep that thought in mind...
The biggest question I have is..
1) How are home prices increasing by up to 25%, and then still selling over the asking price in less than a year.. with no end in sight. Homs that were say, 350k... are now being listed for over 400k and selling 415k-450k+. Thats extreme. Is this fasible? New construction will eventually come down when the price of lumber comes down. Say by 2023, that home built in 2021 for $300k.. is now being built for $260k. That's going to sink people/developers underwater.
2) Will all of these people buying houses significantly over asking price that is ALREADY inflated up to 25% be regretting this in a year or two when the supply returns? Construction is at a century time high & the population s also slowing... considerably. Will a lot of people be underwater on these houses that they HAD to purchase this past year?
I just feel like a 300k home in 2019, that sells for 400k now.. wont even be worth 330k in two years when things start to cool down. Possibly less?
1) How are home prices increasing by up to 25%, and then still selling over the asking price in less than a year.. with no end in sight. Homs that were say, 350k... are now being listed for over 400k and selling 415k-450k+. Thats extreme. Is this fasible? New construction will eventually come down when the price of lumber comes down. Say by 2023, that home built in 2021 for $300k.. is now being built for $260k. That's going to sink people/developers underwater.
2) Will all of these people buying houses significantly over asking price that is ALREADY inflated up to 25% be regretting this in a year or two when the supply returns? Construction is at a century time high & the population s also slowing... considerably. Will a lot of people be underwater on these houses that they HAD to purchase this past year?
I'd assume the builders aren't going to lower the prices on the new construction even if lumber costs go down. Not if the housing market is still hot and inventory is low.
I certainly wouldn't buy anything right now. I'm someone that might eventually want to upgrade, but I'll stay put. I won't get involved in this current craziness.
I'd assume the builders aren't going to lower the prices on the new construction even if lumber costs go down. Not if the housing market is still hot and inventory is low.
I certainly wouldn't buy anything right now. I'm someone that might eventually want to upgrade, but I'll stay put. I won't get involved in this current craziness.
I'm about to build an add on to our house. I debated but talking to builders there is at least a 2 year demand and forecast right now for lumber prices to stay where they are unless something really crazy happens.
I've decided to move forward since I don't think it will improve for awhile and may only get worse.
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