Market Conditions in 96753>Question Details

Michael, Home Buyer in cali

How have the closing prices of new homes been affected with the softer market ? Are developers motivated to?

Asked by Michael, cali Wed Feb 6, 2008

deal more than their 4% in order to move inventory? I ask because it seems that there is an ever increasing inventory in competing neighborhoods that are only 5years old.

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I personally have found that closing prices have increased mainly with funding costs increasing by the lenders. I normally make the Seller pay all the closing costs and they are willing to, but still the closing costs appear to be rising. I'm not a developer so I cannot say but it appears they are keeping prices high in hopes that inventories of existing homes on the market decrease, leaving you with their homes as a more palatable choice. Whether that works, who knows but my experience is that the developers have not dropped prices or given much more incentives to make people run out and buy everything they have.
1 vote Thank Flag Link Wed Jul 1, 2009
Aloha:
My name is Mike Gallagher and I am Broker in Charge at RE/MAX Honolulu.

Sold Price % to Listing Price is approx. 98% and almost always at this %. However there are still plenty of Sellers with very unrealistic expectations here as indicated in the dramtically rising number of Withdrawn and Expired Listings taking place each Month.

You can view these statistics at my website: http://www.hawaiirealestatestatistics.com and you can email me directly at mikeg@hawaii.rr.com

Much Aloha,
Mike G.
1 vote Thank Flag Link Fri May 2, 2008
I have noticed that the "Blue Sky" posting here are from Realtors. A large number of homes have been on the market for 6 months and more. As well as there has been substantial price reductions on most properties. I won't be buying anytime soon. Hawaii Guy
0 votes Thank Flag Link Sun Jul 27, 2008
Absolutely. An increase in inventory will backlog existing home sales. Many of the new home buyers are selling their home to move into the development homes. In California, where you live it has been devastating. I know of a person that didn't complete his contract there and the developer won't return his deposit!
Here in Hawaii, we have much, much less inventory to begin with, especially new homes.
Surprisingly, our inventory for resales has remained pretty steady. It is up about 10% from last year, and 20% from two years ago.
The median number of days on the market has been creeping up and went over 60 days in January, but has now dropped. Inventory has adjusted upward for both SF and Condos, in anticipation of summer moves and higher volume (we hope).
0 votes Thank Flag Link Fri May 16, 2008
Hi Michael,
Walt is correct in his response. You will get more concessions when dealing with the financing aspects or the points on the loan, or even reduced maintenance fees. Sales prices for newer homes are still relatively fixed, because there is always more demand for new construction. What will be affected more are the homes that sold in the last 2 years.

Go to http://www.worrall.com for more info
0 votes Thank Flag Link Tue Apr 22, 2008
Hi Michael,
Good question in these times. There are some basics that may help answer it though.
First: location.
This affects the supply / demand curve directly.
Next, and this is really the simple one, A deal is agreed offer between a willing buyer and a willing seller. In this case, that translates into making an offer and seeing where it goes. In these times you may be plesantly suprised.
Don't rule out asking for non-cash concessions or credit to costs at closing. We are seeing more of these across the board.

Happy house hunting.

Walt Berhalter, Sales Manager, Century 21 ALl Islands - Koloa
GRI, ABRM, E-Pro, JC, CLU, MBA, RA
0 votes Thank Flag Link Wed Feb 6, 2008
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