In a recent trade article, Megan Hopkins wrote the following:”…it’s possible when rents continues to climb, builders will start to see a strong competitive advantage in building for new homeowners who find new construction prices competitive with market rents.” The article was about homebuilder activity being down in January- after a huge spike in December of 2012. In your area are you seeing this slow down? (I do not see it here in North Texas- if anything it is building momentum!) Are you seeing the New Home monthly expense coming closer and closer to matching rental rates in your area? (Definitely seeing this in the North Texas area. Rental prices have increased significantly in the last 12 months whereas builder pricing has remained constant. This now makes building a new viable alternative to renting!)
If a client is a qualified buyer and has planned for the down payment or can qualify for an FHA/VA loan with little to zero down payment then why would they not choose to build a new home? Especially in light of current rental pricing trends?
In speaking with clients there are a few common reasons mentioned mobility, uncertainty of job, and fear of a repeat of the last 6 years. The job issue is significant and shows responsibility on the part of the client, but is it based in reality or based in fear, that is more the question. Mobility- if you are going to stay in your home for at least 3-5 years then the costs of homeownership will be paid for and, in most cases, work to your advantage versus renting. The fear of a repeat housing collapse- it is what it is- fear. We are not a people who works well from a position of fear- move forward, overcome and persevere that is who we, as a people, are and this mentality has served us well through many financial crisis over the decades. (think oil bust or Enron debacle). Do not live in fear of what might be….make decisions with the current information and logical predictor of what is to come and LIVE YOUR LIFE!!!
If homeownership, specifically New construction, is in your future you will know it!
Happy House Hunting in North Texas. If you need a REALTOR® to list your current home, or are looking to buy or rent in the North Texas region- Give Dawn a call/text 214-604-4561 at Avery Properties/Avery Realty Group- where Sellers Enjoy 4% Listings and Buyers Enjoy Cash Back!! (ask me how…..)
New Home Builders actively building in our area include, but are not limited to the following; D.R. Horton, Megatel, Highland Homes, Siena, Altura, Emerald Homes, Horizon Homes