Whoop-dee-doo!
Our residential building permits went up in January...a nice jump!
I say whoop-dee-doo rather sarcastically, as although this is a great thing for the builders and those that represent them, it is not such a terrific thing for some of our neighborhoods.
Why?
It appears that Charlotte is one of the more viable markets for a national builder.
They can still build and sell here, (move the product) which helps their bottom line support other market places. All good.
Here's the rub:
To make these homes more attractive to the first time and move up buyers, they have modified both the plans and the prices in their existing neighborhoods. This is very tough on the re-sale market, but it also tends to switch up the demographics of a neighborhood. Where you are is not where you were. Your neighborhood landscape is changing and you don't even know it-----not yet.
The mantra, of course, is to move these lots.
Spec homes are popping up EVERYWHERE!
If you are a home owner in one of these neighborhoods, your price is now being driven down, not only by the market, but by the very quality and price of the home being built to catch the tax incentives. If the neighborhood price point was once $250K new...it is now $200K new. You just lost $50K and the culprit is in your backyard. New homes being thrown up (pill boxes) to get the contract by April 30th and close by June 30th.
The incentives being put forth are fantastic for first time and move up buyers...but, oh the price we all pay in the long run...in retrospect, this will be viewed as the tipping point.
It is a great plan and I can't say I blame the builders. For them, it is business. But, for our clients, it is home.
Jane Francis Cross 704-608-0228
Broker/Owner Homes by Cross
Serving Charlotte NC Real Estate , Charlotte Luxury Homes and Relocation Needs since 1994.
A full service brokerage covering South Charlotte real estate, Ardrey, Active Age, Ballantyne, Fort Mill, Golf Course Communities, Huntersville, Indian Land, Indian Trail, Lake Norman, Lake Wylie, Marvin, Matthews, Mint Hill, Pineville, Stallings, Uptown Charlotte, Waxhaw, Weddington, Wesley Chapel homes for sale.MLS Home Search
In this part of Pennsylvania, TH Properties folded and took a lot of unsuspecting homeowners or soon-to-be-homeowners down with them. Orleans home builders just filed for bankruptcy last week. I think a lot of home buyers are a bit gun shy about new construction around here right now!
Oh yeah, been there . . . our new construction grinded to a halt a few years back and is only slowwwwly coming back . . .
It's a pity how "standardized" new home builders, when over building and offering outrageous incentives, can deflate the value of other homes. The outcomes seems to reinforce decreased values of existing homes, increasing short sales and eventually when the pot run drys, the new home builders make gigantic overhead costs for themselves or leave the area...Cherise
Jane - that is what happened here as well. People saw their home values drop and drop and drop. More so in the outlying areas - ahhhhhhhhhhh. Breathe..................
I guess these poor people are going to have to stay in their homes longer and wait until the prices stablize once again. This sounds like a win-lose situation. Shame.
Haste makes waste. Maybe that should be the mantra for the builders.
Kara Homes in New Jersey "kaput" and became a royal mess. Folks lost deposits. When the bubble bursts ...
Hmmmmm - Who's the hunk on the roof hunnie?