Has the cost of new construction came down anywhere near to the current market value of existing homes?

Asked by Building Not Buying Now, 18235 Wed Oct 6, 2010

I am not a Real Estate professional but have built a house before and I have not seen a decrease in the cost to build ..what are your experiences?

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4
Bill Eckler, Agent, Venice, FL
Wed Oct 6, 2010
BEST ANSWER
Both real estate professionals and builders are constantly adjusting to the current local real estate market conditions in an effort to find the acceptable levels at which buyers find appealing and are willing to consider purchases.

Home building costs have decreased as a direct result to the use of less expensive building material, less square footage, redesign including lower ceilings etc.

We strongly recommend that buyers of pre-construction property perform an analysis of the variations of new construction today compared to previous new construction to account for these adjustments.

Good luck,

Bill
1 vote
Scott Miller, Agent, Boca Raton, FL
Wed Oct 6, 2010
Hi BNB. I know that I'm not in your area, but in Florida the answer is YES. They are very close to being equal, some properties are selling for less than the cost to build them and they 'almost new', less than 5 years old.

GOOD LUCK.

Scott Miller, Realty Associates. Boca Raton, FL
1 vote
Ann Heitland, Agent, Flagstaff, AZ
Thu Oct 7, 2010
This is a good question that can only be answered by a local real estate professional familiar with both markets (new home and resale) in your area. In Flagstaff, AZ, we've had very little building, but one builder has come out with some homes close to the current median price on resales. These are being snapped up by homebuyers, even with a six-month wait on construction.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Thu Oct 7, 2010
Hi I agree with Bill, when buying new construction....
Careful analysis and comparison to existing homes should be done, and use a local Realtor to assist you,
even if you are buying new construction....
Good Luck to you
Edith YourChicagoConnection
0 votes
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