Two weeks ago I said on my blog (and in my weekly newsletter) that I was cautiously optimistic about sales – the pending sales for Sussex County in May of 2009 had jumped and we were seeing a SUDDEN big increase in traffic at Bay Crossing, an exclusive oasis of a 55 plus maintenance-free community in Lewes where we sell new single family homes by Blenheim. Well, that streamroller is still slowly chugging along.
We had five sales in the last two months at Bay Crossing and received two more offers this past weekend. Seven sales in a new construction community in Sussex County in 2.5 months would be a good figure. At a smaller and more exclusive age-restricted community it’s a really good figure.
As far as resales (existing home sales) we’ve still got a lot of inventory to compete with all over the place and there are foreclosures and short sales still sitting out there mucking things up (if you’re a buyer this translates to “there are still a few unbelievable deals” left)…BUT recently there have actually been some bidding wars on the lower priced short sales and foreclosures so I’m hopeful they will clear out in the next 8-12 months (barring some other economic disaster) AND we’ve got our own buyers keeping us busy writing contracts. On the downside, today’s buyer’s almost never want to offer full price and their anxiety levels are still a little high (which translates to ‘they’re looking and lots and lots of homes before they buy).
On a side note – Sussex County recently announced that they will be receiving Federal grant money to buy foreclosed properties starting this fall. Better late than never I guess.
Anyhow, my point is that it looks like the National Real Estate Market is following the same path of Sussex County - (read the excerpt below), so if you’re a buyer, don’t wait too long. Builders are still making great deals, interest rates are still low, and sellers are still anxious.
First Time Buyers - Nota Bene!
For first-time buyers – you have until November to close on a sale to get that 2009 Federal incentive credit. If you’re looking at new construction, you’re already pushing the limit. If you ‘re shopping for an existing home, you’ve got time but you should know that mortgage banks and appraisals and closings are taking more time than ever. If you’re thinking of buying a foreclosure or short sale, some banks are taking up to 12 weeks to even REVIEW an offer (due to the high backlog). As my dad would say, “Don’t let the grass grow under your feet.”
From CNNMoney.com — The nation’s builders boosted their production in May, starting new housing units at an annualized rate of 532,000, up 17.2% from the revised estimate of 454,000 in April. The data release, a monthly report from the Census Bureau, also revealed that building permits jumped by 4% to a rate of 518,000 from 498,000 in April. Both figures were higher than expected. A consensus estimate from Briefing.com had forecast that starts would rise 485,000 and permits to 508,000. But despite those big improvements against record lows set the month before, the home construction industry still sits deep in the doldrums. In May 2008, new home starts showed an annual rate of 975,000. Two years ago, the rate was about 1.4 million units. Builders’ confidence may get a boost from existing home sales, which have inched up from record lows set during the winter.
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