Tuesday, October 9, 2012

Tips For Buying A New Home In Today's New Home Market.

Almost an acre of land for sale. 212' x 200' per DCAD. Zoned for 10,000' lots minimum.
Priced at only $10.85'. 6506 Robin Rd. Dallas, Tx

By Troy Corman, www.t2realestate.com

Home builders are back. Demand for new homes in some areas is exceeding supply. Commodity costs for land, concrete, lumber, steel and labor are rising. And so are the prices of new homes. So much for tame inflation, huh, Helicopter Ben? Nationally, the median price of new homes sold in July was $224,200 which is up 9.8% from only one year ago.

Last year marked the lowest units of new homes sold ever recorded - a meager 306,000 according to the U.S. Commerce Department. Dallas-Fort Worth home builders are now on pace to build almost 16,000 new homes this year, which is up 25% from last year, but still well below the 2006 pace, when they built almost 50,000 homes.

Dallas housing analyst Ted Wilson, a partner with Residential Strategies said, "there is a concern by the builders that the pace of the recovery is outstripping their capacity. There is a shortage of new home lots. In a market like Frisco, lot prices are up 50% from where they were." He continued. "We are hearing across the northern suburbs that builders are raising their prices a couple of thousand dollars a month."

North Texas and Dallas new home inventory is at a 20-year low, with finished new homes at less than a 2-month supply, according to Metrostudy, Inc. The last time there were only 2,500 finished new homes on the market was us 1993, when there were 2.5 million fewer residents in the DFW metroplex.

With the current new home market more favorable to sellers, it's more important than ever to have a Realtor represent your interests when purchasing a new home. Below are a few suggestions.

The advertised price isn't always the final price. Often, builders advertise a base model so to speak, and then charge you for extras like, upgraded cabinets and carpet, or a lot premium.

Speaking of premium, expect to pay one on a new home, as new homes nationally sell for 34% more than existing homes.

Strategically, you're in a stronger position as a new home buyer when the home is completed or near completion. Builders are usually more motivated to sell, when a home is sitting finished and vacant. In fact, often, the last couple of homes in a subdivision sometimes sell for healthy discounts.

Finally, one thing to keep in mind when buying a new home in rural areas is - how much land is available for additional new homes to be built? It's very hard to compete with home builders when you're trying to sell your 2-year old to 5-year old home versus their brand new homes.

If you are a home buyer looking for a new home, or a home builder looking for land for sale, I'd love to help you. Contact me directly at 214-690-9682.

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.

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