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“OVERBUILT MARKET CREATING MODERN GHOST TOWNS” WHAT WILL HAPPEN HERE?

Overbuilt market creating modern ghost towns
Americans love new construction, but some developments go unfinished

“But given that a growing list of builders have seen construction loans called by banks or fail to sell newly built homes fast enough to keep up with construction loan payments, its no wonder new construction half-towns are popping up along the landscape. The scenario is playing out all over the United States, and is the topic of blogs such as The Home Builder Implode-O-Meter.

While builders are suing in some communities to reinstate their construction loans so they can finish projects, the homes theyve finished in recent months are taking a long time to sell. Data from the Census Bureau and Department of Housing and Urban Development indicate that the amount of time required to sell a newly constructed home has nearly doubled between 2006 and the present. In 2006 it was 4.3 months. By 2007 it had climbed to 6.2 months. As of this June it was 8.4 months. quoting MSNBC.

WHAT WILL HAPPEN WITH NEW DEVELOPMENTS HERE — LIKE TAHOMA TERRA & THURSTON HIGHLANDS STILL UNBUILT???
WHO IS GOING TO QUALIFY TO BUY ALL THESE PROPOSED HOMES?
WHO IS GOING TO LOAN THE MONEY TO BUILD THEM?

The Olympian weighed in on this subject with this August 4th report titled:

“Home sellers turn to incentives to draw buyers
Cooler market prompts bonuses to take a look”

“A new Honda scooter, a trip to a Caribbean destination and a chance to win free gasoline are just some of the incentives that South Sound real-estate agents are using to entice prospective buyers in a slower housing market.

Some agents, though, are split on whether such incentives and other marketing efforts are worthwhile. Re/Max Four Seasons broker and owner Dean Stohl says the best approach for home sellers in this cooler housing climate is to think carefully about the sale.

‘The most important ‘non-gimmick’ are sellers pricing the property competitively and making sure it is in ‘tip-top’ condition before putting it on the market,’ he said.

Still, some agents are rolling out increasingly creative hooks to land that next sale because sales have cooled since the piping-hot years of 2005 and 2006.

In 2006, more than 4,000 houses sold in Thurston County. Through June of this year, sales have fallen more than 20 percent compared with the same period in 2007, Northwest Multiple Listing Service data show.

Tamera Strawn of Riley Jackson Real Estate is working with a Tacoma builder giving away Honda scooters for sales at The Overlook, a new 138-lot development at the top of Tumwater Hill, she said.

‘We’re just looking for something new and out of the box,’ Strawn said about the promotion,”

Posted by Steve on August 14, 2008 at 6:09 am | Permalink

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