Great news for the new home market.

May 12, 2010

The Houston Business Journal is reporting that new home sales are growing again in the United States, and here in Texas, one might be cautiously optimistic that this trend signals a bright future for the new homes industry. According to the U.S. Department of Commerce, new home sales grew by nearly 27 percent from February to March this year, one of the largest nationwide gains to occur in 50 years. Some of those statistics are being credited to the better weather, now that spring is here, as well as the fact that new home buyers have been cashing in on the government’s homebuyer tax credit that just expired at the end of last month. So what does all this good news mean to you if you’re considering the purchase of a new home? Clearly now is the time to buy. Buyer confidence is greater and with each day, less risk is involved because the real estate market is becoming stronger.
Here in Texas, the real estate market has weathered the economic storm of the past few years better than many states in the country. But, with the nationwide rise in home buying we can only expect that our stable housing situation will become even stronger in the months and years to come—good news for the people who are thinking of investing in a home here, To learn more how to begin planning for your new home, email us today.

On a side note: B-CS MLS has recorded 93 more sales for first 4 months of 2010 than 2090. Market improving; up 18.2% over 2009!

Stylecraft Builders – Central Texas’ New Home Builder
www.stylecraft-builders.com

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Existing homes sales may be dropping, but new home sales are on the rise.

April 7, 2010

The Washington Post recently reported on yet another real estate story, announcing that the National Association of Realtors said the sales of previously owned homes dropped again in February, marking the third month in a row of “gloom” for those following the real estate market. However, it’s interesting that there was no mention of new home sales, and how many of these markets across the country are actually growing. It’s difficult to get the facts straight in today’s news sometimes. Statistics can be used to show off or report a particular scenario, but they don’t always portray the overall or complete picture correctly. Such is the case with the real estate market these days. Large companies are posting quarterly losses. However, while it is clear that some areas of the real estate market are struggling to recover, new home sales isn’t one of them—at least not in our area!

It is clear that people are seeing the long-term value in purchasing a new home versus a resale, which is part of why the new home market is doing well even in the earliest stages of the country’s economic recovery. Add in the fact that first time buyers will receive a Federal Tax Credit of $8,000 if they close by April 30 ($6,500 to move-up/repeat buyers) and purchasing a new home now actually makes financial sense. If built in the right location and with a builder whose reputation and expertise are valuable in the area, purchasing a new home will hold its value much better than a resale.

Choosing to buy a new home delivers distinct advantages: the buyer can add personal touches that reflect his/her style and taste all while keeping the resale value in mind for years down the road. Many areas are seeing growth in jobs, new home sales, and business construction, despite the fact that much of the media would like you to think otherwise. Do your homework. Investigate the opportunities in your area. You may be pleasantly surprised at your new found investment opportunities.

Stylecraft Builders

Stylecraft Builders – Central Texas’ New Home Builder
www.stylecraft-builders.com


Why Buying a New Home is an Excellent Investment Opportunity.

February 25, 2010

Big ticket purchases can either increase or decrease in value over time. Take, for instance, buying a new car – one of the worst investment opportunities. A buyer may purchase a new car for $35,000 and drive it right off the lot, feeling pretty good about their investment, lured into a trance, perhaps by that new-car smell. After all, he received a 3-year, 36,000-mile warranty and a 7-year, 100,000-mile engine guarantee. To the buyer, this equates to no repair bills for at least the next three years, compared to possible headaches and necessary repairs if he had purchased a used model. But what about the resale value? Some cars may depreciate as much as 35% the minute they are driven off the lot.

Buying a new home versus a “trade-in” provides buyers with an excellent investment opportunity. Unlike new cars, new homes appreciate over time. Buying a new home makes good business sense. Buyers have the ability to work with builders during the construction phase to include upgrades and landscaping that will increase the value of the home over the long-term. In the future, homeowners may be able to sell their investments for more than $50,000 over its original value. Appreciation will vary, depending on how long the buyer plans to live in the new home before selling. But for example, a home we built for a new homeowner 10 years ago just went on the market and sold for twice its value from a decade ago. When it comes real estate investment, it’s clear that buying a new home makes smart business sense.


Finding a New Home Gets a Bit Tougher

February 17, 2010

With all the “For Sale” signs we’ve seen curbside over the course of the last year, it’s hard to believe we’re even talking about a home shortage—but it actually could happen with new home sales. For buyers who have been saving for years to purchase their brand-new or custom-built dream home, the housing pool could be shrinking. That means buyers will pay higher prices for the new homes that are available.

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Recent federal regulators have made it more difficult for builders to secure loans to build new homes. Federal guidelines are tightening the screws on banks, suggesting they restrict commercial loans to less than 300% of total capacity. The guidelines were never adopted; however, banks still feel the pressure, to the point where they require home builders to pay off loans instead of refinancing.

So what does this mean to you, the buyer looking for a new home? New homes are being sold quicker than they can be built because of the banks’ stringent lending policies. If you want to have your chance at the best selection of new homes available, now is the time to buy.