By Dennis Norman, on August 23rd, 2012
To be candid, there are many aspects to being a new home developer I have not missed since ?retiring? from my life as a developer in 2008 (which just so happens to correspond to when the new home market tanked) other than I do love the creative aspect of it; going into an older neighborhood, with functionally obsolescent homes, tear them down and build new homes suited for today?s consumer.? I?m having a lot more fun on the brokerage side of the biz nowadays so I don?t think I?ll be jumping back in as a developer anytime soon, however, if I were so inclined, I think I might be scouting out some locations to build based upon recent reports on new home sales.So what?s the reason for my new-found optimism?? Well, for starters, I?m not that optimistic, but I think to say I?m encouraged would be accurate.? This morning, the Commerce department released it?s?new home sales data for July 2012 which is somewhat encouraging.? New home sales in July increased 3.6 percent from June and were up a robust 25.3 percent from a year ago, according to the report.? Also, new home inventories are dropping,? to a very comfortable 4.6 month supply in July, down from a 6.7 month supply a year ago.
On the other hand, new home prices slid in July to a median price of $224,200, down from $229,100 in June and down from $229,900 in June 2011.? Even this is encouraging though as it shows stability in new home prices.? I?m telling you, if this keeps up, I see a tight inventory potentially driving new home prices up modestly and perhaps enough, to where it makes sense to put a shovel in the ground again.
Source: http://realestateinvestordaily.com/home-sales-2/is-it-time-to-start-building-new-homes/
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