Home Buying in Columbus>Question Details

Baseball3905, Home Buyer in Pennington, NJ

Why have home prices dropped so much in Mapleton Estates ? Will there be new construction in the near future ?

Asked by Baseball3905, Pennington, NJ Sun Feb 3, 2013

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Of course the easy answer is that prices have dropped dramatically in most areas. But, sometimes it's not so easy. When I looked at the sales over the last six months a few things popped out. First, you had one house sale for $270,000 on the low end and $340,000 on the high end. Now putting aside home features, that is a wide spread. But, when you look closer at the one that sold for $270,000 it was being marketed over 386 days compared to 131 days for the $340,000 sale. Sellers over that long of a time frame generally sell for bigger discounts.

As for new construction in that area, I can't give you a direct answer. I can only tell you that it is hard to sell new homes that compete well with dramatic price reductions in the resale market. While the prices of homes have gone down since their all time highs, the cost of most raw materials to build houses have gone up. So, unless the builder offers smaller homes or homes with less features, it is hard for them to make their target profit. So, I wouldn't expect new houses to be built there anytime soon until the inventory shrinks and prices trend upwards and stabilize.
0 votes Thank Flag Link Tue Feb 19, 2013
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