Welcome to today’s roundup of real estate news, where we explore a variety of topics that impact homeowners, builders, and the housing market at large. From enticing incentives for buyers of newly built homes in Indianapolis to the expansion of affordable housing efforts in Columbus, the landscape is bustling with developments. Additionally, we delve into a recent court ruling that affects insurance coverage for faulty home construction and discuss the ongoing challenges posed by high lumber prices despite recent drops. Stay informed on these crucial issues that could influence your decisions in the real estate world.
What’s the deal with saving on a newly built home? | wthr.com
New homes are in high demand, and builders are offering incentives to attract buyers. One common incentive is a low mortgage rate if you finance through the builder. This can result in significant savings, especially for homes that are ready for immediate occupancy. Builders may also offer credits for upgrades or to buy down interest rates. Realtors advise buyers to negotiate and ask for additional perks such as finished basements, covered porches, or sodded yards. In Indianapolis, new builds are reportedly cheaper per square foot compared to existing homes. Take advantage of these offers and get the most bang for your buck when purchasing a newly built home.
Franklinton Rising expanding affordable housing efforts to South Side
A local nonprofit, Franklinton Rising, is expanding its home-building efforts into the South Side of Columbus. Over the past 10 years, the faith-based organization has developed 12 affordable housing units in the Franklinton neighborhood. Their work includes renovating existing homes and building new houses on city lots. The nonprofit employs young, at-risk adults living in poverty to help construct the homes, providing them with construction skills training and mentoring. After completing the program, participants are connected with local building companies and job opportunities. To celebrate its 10-year anniversary and the development of four new housing units, Franklinton Rising is hosting an event. Join them in their mission to revitalize the area and provide affordable housing.
Faulty Home Construction Not Covered by Insurance, Court Finds
A panel of Massachusetts Appeals Court judges ruled that defective workmanship on a house is not considered property damage in the context of an insurance claim. Two homeowners had argued that their insurer should provide coverage after construction by a contractor led to structural defects. However, the court disagreed, stating that commercial general liability policies define “property damage” as “physical injury,” implying that the property was initially proper and not defective. This ruling highlights the limitations of insurance coverage for faulty home construction.
Lumber prices drop but remain high, affecting home construction costs
The cost of lumber, although significantly lower than its 2021 peak, remains high. While the average price has fallen to $524.50 per thousand board feet, local woodwork companies still consider it expensive. The National Association of Home Builders (NAHB) reports that the price of softwood lumber directly impacts the cost of new homes. With higher interest rates and other economic factors, housing affordability continues to decline. Industry professionals have witnessed the impact of these prices on the construction industry, with significant increases compared to previous years. Despite the drop, lumber prices remain a challenge for the home construction sector.