In my area there has been a lot of new construction. New homes were starting at 280,000 and going up into the luxury class and were selling well a year ago. Now with all the builder incentives it is showing that they are in a tight market.
Builder incentives are as much as no payments until January 2008 on market homes and agent incentives as much as a cruise for 2 with airfare on Princess lines.
Here is where the switch comes in...............
One of the builders that is sitting on an undeveloped parcel has filed for a major modification to the R-PUD plan that was approved. They would like to go from single family housing to mixed use development. They want to build townhouses starting at 170,000 and a small retail area. The township trustees seem to think it is a good thing because of the commercial aspect and the taxes that would be generated but the housing density would be increase so that the same number of units could be built.
Sounds like a plan for the builder to get some commercial construction going which is not currently down and to offer a lower price point home product that they may be able to sell in a slow market.
What do you think of their plan is it a good idea?
Jim works with buyers and sellers in Liberty Township, West Chester, Mason, Fairfield, and the Northern areas of Cincinnati. Ohio Association of REALTORS® Presidents Sales Club Achiever 2007
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Builders are doing what they have to do to keep selling. Would that resale owners would get the message.
There is a builder in a small town in Loudoun County VA that wants to build a 500 town homes. They just can't find enough water. The city supply is innadequate and the wells in the area don't produce sufficiently to supply that density.
It's really laughable. I hope they can't build 500 town homes in this sleepy little rural township. It would ocmpletely change the houseing market of the area.
My wife and I just visited a new condo site where they have sold 32 homes since the first of June. Mind you these are just at the 200k range.
I think I would be ticked off if I had already bought a $280K home and the builde started putting up townhomes next o me...
Land costs are up and the middle class is slowing down and leveling off so yes i see a change. The other big change is with the New Urbanism growth plans where we are movind away from traditional shpping centers and into more localized markets. Wal Mart is participating in our area with a new smaller store design that does not have clothing, sporting goods etc. The banks are less tan 2000 sq feet w/ only 1 drive in window.
I see the same strategy in some parts of my marketplace. Builders need to do what they can to ride out the present market. This might be the opportunity for a little more affordable housing.