As the residential resale market continues to gain strength, the new construction arena is feeling its oats. Builders are building homes on speculation and buyers are purchasing them before the homes are finished. Do I dare think the market has turned? Are builders experiencing a false sense of confidence?
I remember the days of selling a new home and raising the price on the next home by $10,000. This process would continue with every sale. The tenth home was paying $100,000 more than home #1. The word aggressive comes to mind here. That’s what listing new construction was like in 2006 in Franklin MA. The builder came to work every day with a big smile on his face. He knew if I sold a home, there would be an additional $10,000 in his bottom line.
How life changed within the next couple of years. Those memories still exist, but what most builders think about is the most recent change in the market. That change was one that required the builders to drop their prices in excess of $100,000. After dropping the prices, they sat stagnantly for a long period of time. They were all dead in the water.
So, here we are, hearing nail guns at 7:00 am and scheduling showings after the subs have finished for the day. I can’t help but think we need to continue to think positively and capture as much business as possible, just in case this surge is a temporary situation. It’s difficult to forget those tough times!!