Is now a good time to build? - The answer is that it can be but don't get stuck in an unfinished subdivision.
Here is a question that I get weekly and I would say it depends on what you mean by build.
If you want to have a house built in a community with a financially stable and reputable builder then I would say go ahead because you will be able to get a lot of house for the money...but be sure that you aren't one of the first moving in this community. I would want the community to be at least half way built and I would ask the sales agent to see a stat sheet to show me a consistent sales history in the subdivision. You don't want to be stuck in a neighborhood with empty lots for 10 years. I know of several subdivisions in south Charlotte that are offering great buyer incentives on top of their competitive list prices and I would feel comfortable buying my own house in one of these subdivisions.
If you want to build a custom home on a private lot or in a new subdivision (when I say new I mean you will be one of the first 10 houses in the neighborhood) then I would say find a resale or find a new house that has already been built. Too many buyers have this dream of owning a custom built house but you need to understand the market.
The market is saturated with new houses that builders are unable to sale so they continue to drop their list prices. The resale market is influenced by this and is even worse. There are so many home owners upside down on their mortgages (they owe more on their house than it is actually worth) that the real estate market of tomorrow is going to have more short sales and more foreclosures than what most think.
If you are considering finding a lot, outside of a planned subdivision with a reputable builder that you know will stay in the neighborhood to finish the job, I would suggest that you take some time to also view the resales in your area. You should see that you can get more for your money if you decide against building.
Brandon,
I agree with you. There are a lot of new home subdivisions that are struggling to maintain values where a lot of buyers purchased when subprime was big. So you have defaults leading to short sales and foreclosures, and you are also seeing the slow down from the builders. Builders no longer can lean on subprime loans to fill up a neighborhood. Credit is tighter making it harder for buyers so it has impacted the builders. Established neighborhoods have seen little impact.
Though there are pockets in our market area that have been hit, looking at the national picture it could be way worse. The Houston, TX area is one of the best real estate markets in the country.
Great information.
Jeremy Williams
Keller Williams Realty NE
Kingwood, TX
www.williams4yourhome.com