New Home Sales Set A New Record… But it is not a good one…
Many news sources reported this week that new home sales reached yet another milestone. I said New Home Sales were headed for the “ditch” and here is a bit of evidence that my prediction in early 2006 was spot on!
New single-family home sales dropped to the lowest rate in February since1995, and sales were down about 29.8 percent from the February 2007 rate. This was the report of the U.S. Census Bureau and U.S. Department of Housing and Urban Development. They also state that we have an estimated nearly 10 months of Builder inventory.
I will elaborate on the estimated inventory at another time but here is what is more important now.
What does this mean to you as a Buyer or Seller?
What Buyers need to know:
*Research, research and then research some more. Look at Resales even if you want new.
*No time to go it alone, some of the Builder incentives are outrageous. You as the Buyer are indirectly paying for those incentives, whether you have representation or not! A good agent will make you aware of the incentive upfront, and will pass on all or part, of the incentive to the Buyer.
*Negotiate, Negotiate and Negotiate. After the research has been done.
*Get approved with a reputable Lender and have a letter ready.
*Lending criteria is tightening and will continue as there are fewer investors in the marketplace to back those loans.
What Sellers need to know:
- Buyers are educated and have done their research.
- Pricing right at the beginning of selling is crucial to your success at selling, this is no time to “test” the market. You will hate the test results.
- Buyers need to be pre-approved.
- Buyers have many choices and are overwhelmed with the option. First impression may be your only shot.
- See all the above
Any agent that tells you they have been in “this market” does not understand this market. We are in the Car Max real estate mode. Price, product and financing is changing daily. Mortgage industry is tightening daily largely because the pool of investor financing has shrunk so much. Homes are not appraising. These are uncharted waters. Be sure to get the best help in making your next move!
More to come on Financing and New Homes.
Debby Crawford
REALTOR®
Crawford Group Atlanta
Keller Williams Realty Peachtree Battle
2345 Peachtree Road, Suite A & B
Atlanta, GA 30305 | www.CrawfordGroupAtlanta.com
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