Our builders are building new homes on speculation, and homeowners of resale homes are feeling comfortable purchasing those new homes. We are now in need of more spec homes.
As more spec homes are becoming available, more resale homes will be on the market. These are the homes owned by the buyers of those spec houses. Builders are treading lightly though. Previously, our builders would start two or three spec homes at a time.
Now, they are cautiously optimistic, and it’s one home at a time. When a purchase and sales agreement is signed and all contingencies satisfied, the next home is started. It sure does slow down the pace and the number of transactions, but it’s good business sense.
Resale homes are selling, and new homes are being purchased by those resale homeowners. Promoting our new home inventory will not only create new transactions but it will replenish our fading supply of resale homes. This is a prime time to buy a new home, while prices are affordable and interest rates are at an all time low. This is not the time to hesitate!!