First Time Home Buyers Perfect Storm- Bay Area New Construction

New Home Supply (2010-2011)First time home buyers are in the perfect situation to buy new housing in the Bay Area. On paper, the market for newly-built, single-family homes looks healthy.

Last month, the number of new homes sold on an annualized, seasonally-adjusted basis tallied 319,000. The May reading is the second-highest of the year, and 6 percent above the current 12-month average.

These are strong numbers in isolation. However, after accounting for the dwindling supply of new homes for sale as well, the figures look even stronger.

The Numbers Make the Case

In May, at the current pace of sales, the complete, national inventory of new homes for sale would have been sold in just 6.2 months.

That’s the quickest pace in a year and a 3-month improvement from a year ago.

To hear it from homebuilders, though, you’d think that sales were crashing.

Homebuilder confidence slipped to a 9-month low this month; builders report slowing foot traffic; and the prospects for the next 6 months appear weak. This is not the portrait painted by HUD’s May New Home Sales report.

Find the Best Deal…

As a home buyer in Dublin CA, this dichotomy may work to your advantage.

Falling supplies and rising demand correlate to higher home prices. Yet, builders are pessimistic for their market. Therefore, despite the economics, psychology may help buyers experience more favorable negotiations, including upgrades and other builder concessions.

If you’re a buyer in today’s market, it’s a reason to consider the new home market. There may be good value once you know where to look.

Have a Plan for your Mortgage

If you’re in the market for a deal on New Contruction, conditions look good. Talk to your real estate agent to gauge your options. If you’re considering becoming a home owner this year with mortgage payments on average less than the rent check  contact me today. I love to work with readers that find my information on the Mortgage and Housing Market helpful in your decision making process. As a Mortgage Planner at Vintage Mortgage Group in Pleasanton I am in a unique position to help you capitalize at any point in the market. Contact me below today to help you with your purchase or refinance.

 

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