Even though Louisville homes for sale aren’t doing as well as expected, builders say that people are warming up to the idea of buying new homes, rather than foreclosures. According to a survey conducted by FactSet, new home sales rose to 323,000 as of June 2011, which is up from May.
Benefits of Buying New Homes: There are, in fact, many reasons to consider purchasing new homes from builders, including:
Peace of Mind: Good builders offer a 1-year total manufacturerâs warranty on all parts of the home, plus a 10-year StrucSure warranty on the structural components.
Newness: Thereâs something wonderful about knowing you are the only human being to ever reside in that particular space. It is completely unspoiled and untainted.
Community: Many new homes are built in brand-new communities centered around parks, retail space and exclusive clubhouses. Here you can bond with your neighbors who are also new.
Cost: The price of new homes has dropped considerably over the years, allowing more people to enter this market. Furthermore, many homes feature âgreenâ features, which drop utility bills.
Customization: If youâre willing to wait a few months, you may customize every last detail in a semi-custom-built home. Or, if you donât want to wait, you can choose from many floorplans.
Incentives: Builders of new homes are always looking for ways to create buyer incentives. They may decrease downpayment requirements or help buyers sell their existing homes, for example.
Why Isnât Everyone Buying New?
On the other hand, 323,000 sales is still a far cry from the 700,000 home sales that indicate a healthy market. Overall, sales of new homes fell 18 percent since the recession began and 2010 was the worst year for new home sales since 1950. When the market was booming, there were five straight years of record-high sales, but those happy times were followed by five years of declines in new home sales. The buyersâ market is still pitiful due to unemployment, tougher lending standards and the weak economy. Also, foreclosure homes and short sales are offering rock-bottom prices that are hard for many people to resist.
What Makes New Home Sales So Important?
Even though new homes represent just one-fifth of the total housing market, the National Association of Home Builders reports that each new home creates 3 new jobs and $90,000 in tax revenue. That’s true of Louisville homes as well as other markets.