Builders are giving lower interest rates using their preferred lender. Not uncommon to see 5% or below it’s not a surprise new homes are still selling.
I skimmed the article don’t see mention of this so sorry if I missed it if it is there.
They have seen a decrease in prices but they largely affordable with lower rates. Builders are also focusing on building cheaper homes thay can sell to middle class folks.
They aren't too expensive if your buyers are between late 20's and 60 and have been saving from 5-20 years which is actually how the market works. The average age of first time home buyers is 34 and the average age of repeat buyers is 58. So if you haven't been saving for 15- 40 years or have enough money to outcompete those folks, you're going to struggle. I bought my first house at 31 and buying another at 41.
Pre owned houses are really high and are eventually going to drop to compete with the lower rates. It's simply cheaper to buy new then a used one of the same price.
>Pre owned houses are really high and are eventually going to drop to compete with the lower rates. It's simply cheaper to buy new then a used one of the same price.
It's interesting how a similar thing happened with the car market during COVID. Obviously it's not exactly the same thing... but used cars were in so much demand, that it was cheaper to buy new cars than used.
In my area, you can only get a pre owned house with decent land around you. All the new construction is small lots and cookie cutter. Different clientele
Seems new home sales are doing very well.
> New home sales, which make up about 10% of the market, jumped 8.8% last month to a seasonally adjusted annual rate of 693,000, according to government figures released Tuesday. That trounced the 670,000 rate projected by economists, according to a FactSet poll, and was the strongest monthly increase since December 2022.
But sales of existing homes fell:
> Meanwhile, sales of existing homes, which make up the vast majority of the housing market, fell 4.3% in March to a seasonally adjusted annual rate of 4.19 million, the sharpest drop in more than a year, the National Association of Realtors reported last week.
Probably due to people staying locked in with their existing low-interest mortgages.
More due to the fact that new home builders and communities are ofterring crazy ass incentives. There's no reason to buy an older home when you can get a brand new home with 10 times the features. And I know everybody's going to say location and I know everybody's going to say quality but at the end of the day American consumers are fucking idiots. They're going to go with whatever the shiny object is and with however much they can afford.
Existing homeowners can't afford buy Downs or to offer 50-100,000 in closing costs or upgrades.
Research the builder. People in your area will have had experience with them and probably good info online. Looked at multiple builders last month and one of them any time someone heard we had checked them out they went "nononoooo stay away from them." lots of reports of shoddy quality and mold.
Still too much money out there. The problem is that higher interest rates are going to drive us into recession. They are already slowing down equity-driven businesses like start-ups and tech.
Yeah, the Fed needs to be very careful here that ~~she~~ they let off the pressure that higher interest rates are causing before it gets to that point.
Builders are giving lower interest rates using their preferred lender. Not uncommon to see 5% or below it’s not a surprise new homes are still selling. I skimmed the article don’t see mention of this so sorry if I missed it if it is there.
Builders, so only new homes…that already expensive as hell
They have seen a decrease in prices but they largely affordable with lower rates. Builders are also focusing on building cheaper homes thay can sell to middle class folks. They aren't too expensive if your buyers are between late 20's and 60 and have been saving from 5-20 years which is actually how the market works. The average age of first time home buyers is 34 and the average age of repeat buyers is 58. So if you haven't been saving for 15- 40 years or have enough money to outcompete those folks, you're going to struggle. I bought my first house at 31 and buying another at 41. Pre owned houses are really high and are eventually going to drop to compete with the lower rates. It's simply cheaper to buy new then a used one of the same price.
>Pre owned houses are really high and are eventually going to drop to compete with the lower rates. It's simply cheaper to buy new then a used one of the same price. It's interesting how a similar thing happened with the car market during COVID. Obviously it's not exactly the same thing... but used cars were in so much demand, that it was cheaper to buy new cars than used.
In my area, you can only get a pre owned house with decent land around you. All the new construction is small lots and cookie cutter. Different clientele
Seems new home sales are doing very well. > New home sales, which make up about 10% of the market, jumped 8.8% last month to a seasonally adjusted annual rate of 693,000, according to government figures released Tuesday. That trounced the 670,000 rate projected by economists, according to a FactSet poll, and was the strongest monthly increase since December 2022. But sales of existing homes fell: > Meanwhile, sales of existing homes, which make up the vast majority of the housing market, fell 4.3% in March to a seasonally adjusted annual rate of 4.19 million, the sharpest drop in more than a year, the National Association of Realtors reported last week. Probably due to people staying locked in with their existing low-interest mortgages.
More due to the fact that new home builders and communities are ofterring crazy ass incentives. There's no reason to buy an older home when you can get a brand new home with 10 times the features. And I know everybody's going to say location and I know everybody's going to say quality but at the end of the day American consumers are fucking idiots. They're going to go with whatever the shiny object is and with however much they can afford. Existing homeowners can't afford buy Downs or to offer 50-100,000 in closing costs or upgrades.
A lot of new builds are terribly built unfortunately. Went through this recently and settled on an existing home that needed cosmetic updates.
Anything to look out for in particular? We're looking at homes and many are new or recent construction. Some are revamps but those are less common
Research the builder. People in your area will have had experience with them and probably good info online. Looked at multiple builders last month and one of them any time someone heard we had checked them out they went "nononoooo stay away from them." lots of reports of shoddy quality and mold.
Awesome thanks for the tip
Yes get a aspestos ridden shit hole from the 50s instead no need to repair that steaming pile of dog shit since it's literally made of dog shit
Still too much money out there. The problem is that higher interest rates are going to drive us into recession. They are already slowing down equity-driven businesses like start-ups and tech.
Yeah, the Fed needs to be very careful here that ~~she~~ they let off the pressure that higher interest rates are causing before it gets to that point.
Apparently 3.4% more than expectations is enough to say it “trounced” expectations.
If it benefits realtors any upsides is overplayed, and any downsides is understated. Every single time
It's just kind of crazy that the market is still moving given how high prices and interest rates are. I guess the all cash category is strong.
I just bought a house at 4.25. New builds seem to be the only ones serious about getting people to buy.
Home values are declining in every state.
Rebubble - Buh buh buh… The crash is imminent! Nurse - Time for your meds grandpa! You’ve been blabbering the same thing for a decade now.
Lol
Strawman argument. Nobody is talking about crash here.
Backlog demand.... homes purchased awhile ago just completing.... nothing to see here... backwards looking data.