Have you already missed the bottom of the real estate market? 46 of the 69 new homes on the market in Windham New Hampshire are to be constructed. As existing inventory of houses built in 2006-2007 has been selling off, only 23 ready-to-move-in homes remain on the market.
By Mr. Janos, realtor Windham NH, 603-438-9134
New construction has shifted to custom homes, houses built to order. Financing for spec homes (homes built on speculation) has dried up, land loans are nearly impossible to get. First time home buyers may have difficulty securing a new construction loan and jumbo mortgages, non-conforming no-doc loans may become a thing of past.
New construction home by Delbar Builders: ready to move in
As a result, the standing inventory of new construction homes ready for occupancy has been dropping along with applications for new permits to build. Diminishing supply is usually a precursor to prices firming and eventually going up. If you are in the market now, you may want to pick the home that best suits for needs and lock in today’s price and mortgage rates.
Why is new construction the best deal?
Builders have reduced costs and are willing to accept less profit. They are also able to negotiate lower land prices and sub-contractor fees. Although construction material costs have risen along with gas prices, homebuilders can undercut existing property prices.
Sellers who purchased their house at the peak of the market are not able to match these prices because they don’t have enough equity. The market has reversed: new construction homes are less expensive than resale homes.
How can consumers save money with new construction?
Most of the “real” new construction homes in Windham area ready for move in 30-60 days, allowing buyers to select options, flooring, kitchen cabinets and pay only for the extras they actually need. Why pay for things that the original owner of a house wanted but you don’t care for?
Open floorplan, state of the art kitchen with granite countertops
New homes built in 2006-2007 come with many features included: automatic sprinkler system for lawn irrigation, security system with CO and fire sensors for reduced home insurance rates are just a few examples. The construction materials, methods are state of the art and these homes typically offer a one-year warranty.
Less maintenance means more vacation and free time.
All systems, roof, appliances are new; no major replacement expenses or projects for every weekend – take the money and go on vacation instead.
Low maintenance vinyl siding, windows, composite materials used for decks (instead of pressure treated wood with Arsenic content) eliminate painting and staining. Cleaner, more efficient gas furnace, central AC, high-grade insulation and windows reduce heating costs.
New construction homes in Windham are upscale and come with central everything: heat, AC, VAC, alarm, irrigation system, leaving cutting the grass as the only chore and even that can be “outsourced”.
Silver lining for resale homes:
Once the standing inventory of new construction houses clears up, existing homes become the logical choice for relocation buyers. Also, consumers who can’t afford to wait out the 3-4 months construction period or are not willing to face the challenges of the home building process, will chose resale properties.
