It’s apparent that local builders are hesitant to start more homes until they sell their existing inventory, according to the number of building permits issued in September.
Meridian, formerly a hotbed of residential construction, issued only 76 single-family building permits in September vs. 280 permits in September 2005.
Boise issued only 20 building permits this past month, down from 77 in September 2005.
September sales activity (closed units) for Ada County single-family homes on lots/acreage was off more than 42% from a year earlier.
A year ago, developable land in North Meridian was going for as much as $140,000/acre, but now that same land goes for $80,000/acre and builders are trying to sell their lots because they no longer have buyers lined up to buy their homes.
I am hearing comments that some of our larger builders are sitting on hundreds of unsold homes, a fact borne out by daily e-mails from desperate listing agents offering as much as $10,000 bonus commission (in addition to a 3% selling commission) if I will sell one of their homes.
And, I am seeing huge price reductions as builders try to unload their spec home inventory before our slower winter market arrives.
If you are a buyer, looking for a deal on a new home, now’s the time to make your move!
Those motivated builders are creating stiff competition for resale home sellers who are still trying to get last year’s price for their home.
Current builder incentives include bonus commissions to selling agents, mortgage buydowns, $5,000 for buyers to use however they want, etc.
Holland Realty is even offering a new car to homebuyers in one of their subdivisions!
Only problem with that is who wants a Kia Sephia parked in the driveway of their new home?
Doesn’t anyone get it?
It’s the price (insert the word of your choice here)!