Although existing real estate sales in our MLS have been down this year new home construction has been hammered. I think it is a result of banks not lending for speculative building and buyers finding homes that are almost new for much less than builders can build new homes for. Unfortunately this trend might last for some time. Consider the data below. The data below represents homes sales in each year, Jan.1-Oct.9
2006-586
2007-477
2008-303
2009-256
2010-254-
2011-190
In my next post I talk about what builders can do to get a competitive edge.
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Isn't the negative sales trend due, at least in part, to the fact that North Carolina's housing prices have not been as affected by the economy as is the case in most other states? Florida's housing prices have plummeted since the housing bubble burst, and the negative effects of hurricanes there have run folks out. Houses, in some areas of Florida, can be bought for a third or less of their pre-bubble prices.
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