New Construction

There's another sign out there that things are improving.  We are starting to see new construction again.  When prices go down, new construction has a hard time competing, since the costs of land, site improvements, labor, and materials don't really go down much, so new construction can't compare to the price of a home that was built a few years ago.  In addition, loans are harder to get, and most builders find it difficult to get financing for projects.  Add in the time a completed home could sit on the market before selling, and you don't see much being started.

Lately, statistics from around the country show housing starts beginning to rise.  We're at the end of that increase, since we don't have as much land, as much new employment, and costs as low as some other states.  Even we, however, are noticing activity.  There is always a portion of the buying public that seeks out new construction, especially people moving from other places, who want their new home to look like the home they left behind.  In recent years, many of them have turned to renting, either because they left behind an unsold home, or because they were worried that it was the wrong time to be buying.  Eventually, even the most skittish will want to settle down.  And it looks as though that time may be upon us--good news for everyone!

Spring Inventory

I ran our Wallingford Regional office meeting this morning. We went through the list of every listing we have in that office, and, as usual these days, we thought almost 90% of them were not going to sell at their current price. Sometimes it's not because of what we would consider inherent overpricing, but rather that something about the layout, the condition, the price range, or the location is causing it not to sell; in the end, though, often the only way to fix the problem is by--you guessed it--lowering the price.

At the same meeting, however, we discussed properties that went quickly and with multiple offers. We therefore concluded that, since much of our inventory was going to sit for the foreseeable future, we were short on listings for the spring market. We need more of the homes that people want to buy, in neighborhoods where they want to live.

Before deciding what to do as a seller, then, you need to consider this bifurcated market, and figure out where your home will fall. If you live in an area where employment is stable and newcomers are entering, this is a great time to list. And do it quickly, before the rush begins. There's always something to fix, or clean, or de-clutter, and you don't want to miss the spring market.