In a market where new home sales have hit rock bottom, developers are focusing their efforts on building homes that are financially friendly. This seems to be catching the eyes of many first time buyers.
Major new home development companies are scaling back their new luxury home development projects and are now building more homes that range in price from $250,000 and below. To keep the final price of these homes below $250,000 developers have cut back upgraded amenities like; granite counter tops, top of the line washer/dryers and stainless steel refrigerators. Other cut backs include; linoleum flooring and traditional carpeting. Making these changes has allowed the developers to build a quality home within the financial reach of the first time buyer.
In today’s foreclosure market there is an endless supply of reasonably priced bank owned that are within the that buyer’s price range. The down side to taking over one of these foreclosures is that in most cases the homes are in immediate need of repair. Buying an existing home that was taken back from an owner can have serious damages that can cost thousands of dollars. Many already strapped for cash home buyers do not have the additional cash to make costly repairs after such a big purchase.
However these new homes are now being offered at 2002 prices. These buyers are not burdening themselves with an endless amount of costly repairs. They are buying new and planning to upgrade their amenities at a later time when they are not so strapped for cash. Becoming a new home owner can be extremely stressful. The relaxed feeling of not having to spend every cent you have and all of your free time repairing a “fixer upper”, is driving more and more first time buyers to purchase new and at these reasonable prices who can blame them.
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