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Thread summary:

Home prices fall to 17 year low in Tampa Bay area, sales down 34.5% year to year comparison, backed up inventory, homes on market for average of 11 months

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Old 09-25-2008, 01:05 PM
 
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New home sales fall to 17-year low - Bay News 9 (http://www.baynews9.com/content/36/2008/9/25/385716.html?title=New+home+sales+fall+to+17-year+low+ - broken link)
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Old 09-25-2008, 02:10 PM
 
Location: Wouldn't you like to know?
9,116 posts, read 17,049,707 times
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not surprising at all considering the credit crunch and abudant inventory of SFH available.....Just cut and paste this headline for at least 6-8 months out from now I'd suspect.


The good thing is that housing starts are slowing dramatically...this will help somewhat w/inventory...
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Old 09-25-2008, 02:40 PM
 
Location: Central Maryland - Mt Airy
160 posts, read 776,596 times
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They should pass a law that prohibits building unsold spec homes. Fine if someone wants to buy and build a new house from a builder but builders have got to stop building all these unsold specs. It's ridiculous...
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Old 09-25-2008, 02:55 PM
 
Location: Charlotte, NC
2,193 posts, read 4,880,760 times
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Debi, I don't think builders are building all these spec homes anymore. Some of the new homes that are sitting, I believe is because someone had the intention of buying it and had to walk for whatever reason.
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Old 09-25-2008, 02:56 PM
 
Location: Central N.J.
34 posts, read 73,220 times
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I happen to work for a builder, and the problem is they have a schedule to keep so they have to build/sell/close according to that schedule. All the money is borrowed to build them. It is horrible, we have a ton of specs available. We wind up giving huge incentives to sell them. Because of that darn schedule. I may be out of a job soon.
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Old 09-25-2008, 03:12 PM
 
27,094 posts, read 44,740,321 times
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Quote:
Originally Posted by MMKIDS View Post
I happen to work for a builder, and the problem is they have a schedule to keep so they have to build/sell/close according to that schedule. All the money is borrowed to build them. It is horrible, we have a ton of specs available. We wind up giving huge incentives to sell them. Because of that darn schedule. I may be out of a job soon.
I feel sorry for you.
In my area some of the builders are building the same models for the last 6 years...which is cheap for the builders to use the same drawings to build that model, but at one point buyers want to see different models.....so IMO they are to blame also for trying to make money that way....

Who wants to buy the same car model, years later, etc....
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Old 09-25-2008, 04:22 PM
 
Location: Central Maryland - Mt Airy
160 posts, read 776,596 times
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MMKIDS, I hear ya. I know all about the lot take-down schedules and builder's obligations (with the developers) to continue to buy the agreed to number of lots at the agreed to price (regardless if that price is from 2005) from the developer (who refuses to reduce the lot price because he has his own bank/financial obligations) with borrowed money or else they loose a huge lot deposit to the developer due to breech of their take-down contract. Builder's are barely hanging on and getting buried deeper and deeper as they continue in this vicious cycle, buying over priced lots, building and flooding the market with over priced spec houses that sit on their books for months only to end up sold at huge discounts with no profit and often at a loss. If there was a national moratorium on building new unsold spec houses, I imagine a lot of builders and developers would go under but many may be headed that way anyway, able developers would likely be forced to work with their banks to reduce the lot price so the developer could continue to sell the lots (what builder is going to buy and carry lots they can’t build anything on for a year or two unless the house is sold?), unable developers would have to go bankrupt and/or sell the whole development to another developer who can reduce the lot price. Reduced lots prices would then let builders be more flexible on new home prices, which would help sales of both new and existing homes (inventory would start to decline due to fewer specs on the market). I don’t claim to know how all the details would work-out but I do strongly believe spec homes should be banned for at least a year. Frankly, I don’t understand why banks are still financing them and allowing them to be built.

Sheenie, some of the smaller builders have stopped with the specs but I know the bigger ones are still at it.
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Old 09-25-2008, 07:11 PM
 
1,989 posts, read 4,302,188 times
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Quote:
Originally Posted by Debi18 View Post
They should pass a law that prohibits building unsold spec homes. Fine if someone wants to buy and build a new house from a builder but builders have got to stop building all these unsold specs. It's ridiculous...
Amen. If not a law, than a ridiculously high tax or fee or something that discourages the practice.

The other problem with homes built on spec (other than that there are too many of them) is that no one is driving the bus in terms of aesthetics. Many builders don't care or cheap out. The result is a mish mash of gawdy and anonymous homes that have no "personal" feel because no one had any personal taste invested in them. I can't believe how ugly some of this housing stock is.
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Old 09-29-2008, 10:45 PM
 
Location: Michissippi
3,119 posts, read 7,792,323 times
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Quote:
Originally Posted by Debi18 View Post
They should pass a law that prohibits building unsold spec homes. Fine if someone wants to buy and build a new house from a builder but builders have got to stop building all these unsold specs. It's ridiculous...
Why should there be a law to prohibit it? If some fool builder wants to build house for little or no profit or a loss that's his problem.

Consequently, some people might propose that we should have a law that says that empty houses must be sold within two months, especially for bank-owned foreclosures. Imagine how that would help to push down the nation's currently outrageous home values and help to make home ownership for the middle class affordable again.
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Old 09-29-2008, 10:47 PM
 
315 posts, read 327,097 times
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What bubble! The market is simply correcting itself! So they told me 2 years ago.
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