Manson Real Estate

Website content

I am thinking that they can gain more by writing off their losses than by letting it all sit idle.

Caffeinated Content

Lies to make the administration llok good.

Caffeinated Content

It’s the same as car sales, people are repairing their old cars instead of buying new ones just as they are fixing up their current homes instead of moving.

Kansieo.com

People are buying

They’re just buying new homes & newer preowns. They’re not buying foreclosures and older pre-owns. When talking real estate you have to make the distinctions between those individual markets. They’re completely different areas of the market and they cater to two completely different types of buyers.

First time home buyers are floating the markets right now b/c of the $8k tax credit.

Older pre-owns need work and are unappealing when you’re a 20 something with very little cash to invest in a property & no homeownership experience. Things like roofing, HVAC equipment, water heaters, etc. have a shelf life… there goes the $8k + probably another $7k out of pocket right off the bat if those items haven’t been replaced by the owner. Chances are slim that they were since nobody has had the money to spend on that kind of thing these days. Interior finishes like carpet, flooring, light fixtures, etc. go out of style. Fencing, trim & landscaping get worn and neglected. So you’re looking at at least $10k on average for a 10yr+ home to get the house up to speed and that’s only if there are no structural problems that come up during inspection. Replacing & correcting these things is not cheap or easy when it’s your first time and you have no homeownership experience or capital. They’re better suited for investors & people with the capital/equity to get in and make it work.

Foreclosures are a mess of red tape. The offering process is complicated. The auction process is complicated. Sometimes there are 2nd & 3rd liens on a property. Many of them haven’t been maintained or even cleaned. Sometimes you’re waiting for 2 weeks on a bid, and they let you know on the 3rd week that it was sold 2 weeks ago. It’s just a disaster. They’re not well suited for first time homebuyers, they’re better suited for investors & people looking for a fixer-upper.

The fixer-upper & move-up markets have dwindled because homes are not gaining equity as quickly as they have been. In some markets homes have lost value. It’s not worth investing even $10k in a piece of property right now because the chances of you getting a return on your investment are slim to none unless you plan to hang onto the home for 5+ years.

So newer preowns & new construction are a appealing to the bulk of buyers in the market right now. A full warranty is provided in most cases, everything is new or fairly new and wont need to be replaced for a number of years. The interior finishings are up to date. Many of the homes are energy star. The product itself in most areas has improved since the industry tanked. So they sell. Because they’re everything a homebuyer wants right now. They just want to be able to move in and not have to worry about things breaking. Everyone is strapped for cash right now. Nobody wants surprises & extra expenses beyond utilities.

The answerer above me is also correct, from a building standpoint most builders signed land deals with land developers years and years ago. They have no choice but to develop the lots they’ve already agreed to develop or they lose capital per those agreements. But this is actually a great time to buy land for future developments because of the cost of land has decreased and it allows builders to build the same product at a lower price.

Having said that, new home builders have scaled back quite a bit from where they were 5 years ago. Less inventory. Fewer developments. Etc. If you think construction is going up like crazy now, think back to 8 years ago when homes were going up on every street corner like mad.

Anyway, in summary:
New home sales are rebounding
Newer preowned sales are rebounding
Foreclosures are stagnant in most areas
older preowned homes are stagnant in most areas
First time homebuyers are driving the markets
Investors, fix & flippers, and move-up buyers wont rebound until home prices start to increase & homes are gaining equity.
Interest rates are low but rising
FHA is barely squeaking by but has effectively replaced subprime
Conventional loans requirements are strict as they’ve ever been
Loan requirements are getting tighter in general and the fed is choking up on regulations
…. so it’ll make for an interesting quarter next quarter.

Create a video blog

imo
the number is relative, you know, one relative to zero is a big jump. imo

I know some folks who are building but they are mature people who are building on land they have had for years and they are taking
advantage of the slump in building material prices, spending their
money from savings. I know no one who is in a home and has sold
it to move up in the market or away to a new town. Those are
standing still.