What's in the Forecast..New or Used?

New home inventory is at a low yet permits for future construction homes have risen 4.5% for single family homes.

HOW CAN THIS BE???

SIMPLE: CONSTRUCTED FOR SELF WEALTH NOT THE MARKET.

The trend in home sales gives the builder confidence that they can build for the price that they can buy used.

<<TIP: Builders often set the values on the home market.>>

New homes are typically closer to their market value!

HERE ARE 3 REASON WHY:

1. Home prices often influenced by mortgage payoff.

2. Overpaid accepted offers become new benchmark.

3. Everyone thinks their home is built with golden screws.

###Don't get me wrong! Not all used homes are overpriced###

Take a look at when you build and how you can reap the benefit of low taxes for one to two years. Your property taxes for the current year are based on the value of your home in January of the previous year. So yes, building in March gives you "dirt lot" value for your home in January.....MAKING SENSE???

Stay tuned next week to the insights of "Reaping large costs" when building...if you don't set BOUNDARIES.