New Home Supplies Keep Shrinking; “Good Deals” Under Pressure in the Bay Area

New Home Supplies Keep Shrinking; “Good Deals” Under Pressure in the Bay Area

New Home Supply 2010-2011Home builders are slowly reducing inventory.

According to Census Bureau data, the number of new homes slid 1 percent from May. On a seasonally-adjusted, annualized basis, home buyers bought 312,000 newly-built homes last month.

Is the News Painting the Right Picture?

It’s the third straight month of falling sales and the headline data casts the Tri Valley housing market in a negative light.

Upon closer inspection, however, the numbers appear quite strong.

First, sales are down marginally. Total units sold have dropped just 2 percent from the highs of the year. And, second, the number of newly-built homes for sale is down markedly from last year

There are 22% fewer new homes for sale today as compared to June 2010

At today’s sales pace, the complete new home inventory would be sold in 6.3 months – the quickest sell-out window since the expiration of the 2010 federal home buyer tax credit.

Builders Set the Tone

Builders are feeling better about their business, too.

After falling to a 9-month low, homebuilder confidence rebounded this month, boosted by expectations for a strong fall season. For buyers across California , this could be seen as a market-shifting signal.

When builder confidence rises, negotiating for upgrades and price reductions can be tougher; “good deals” get scarce.

If you’re a home buyer and are considering new construction, don’t let the headlines fool you. Sales figures are slipping, but that’s because there are fewer homes are for sale nationwide. The inventory is shrinking and that can push home prices higher. If you wold like a referral to a local Tri Valley agent you can trust please give me a call, I would be happy to provide one with a proven track record.

Have a Plan for your Mortgage

If you’re considering a home purchase and you are interested in new construction or an existing home you need to plan on financing first.  I love to work with my Bay Area 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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