New Homes vs. Resale Homes

August 13, 2007

 Home builders are becoming increasingly concerned about rising fees and regulations being imposed on them by local governments where they are building homes. This comes at a time when their prices are being lowered and inventories are rising. A report from the National Association of Home Builders notes that each $1,000 increase in the cost of a new median-priced home forces another 217,000 prospective buyers out of the new home marketplace.

“The NAHB study shows that even modest impact fees can have a dramatic effect on housing affordability,” said Jerry Howard, CEO of the association. “Local governments need to understand that higher regulatory costs frequently push up the price of housing beyond the means of many teachers, firefighters, police officers and other moderate-income workers.”

This trend, resulting in rising prices of newly constructed homes, is turning the focus of many prospective buyers to resale (previously owned) homes, as opposed to new home developments. They are finding, increasingly, that the best values are in resale homes.

Posted in All Things San Diego, Helpful Hints, Lending, Local Business, Real Estate, Things of Interest