As the economy begins to recover and housing rebounds, the climate for building a new home in southeast Michigan has improved dramatically over the past 18 months. While the local re-sale market has been strong as well, there is limited availability – especially in some of the more desirable areas – and what does exist is either overpriced or being sold as a short sale.
Foreclosures remain an option, but those available are in need of a serious investment in time and money. Many foreclosed homes have yet to be released for sale, as banks keep much of their inventory off the market in order to help drive property values back up. In turn, buyers are igniting bidding wars for the few desirable homes remaining.
Builders on the other hand, provide new homes that are move-in ready. Lot prices are the lowest they’ve been in decades; meaning new homes are as affordable as ever. Unfortunately, locating all the homes and communities being built can be somewhat of a challenge. The building industry changed during the recession, as many of the area’s larger builders consolidated their operations, merged with other builders or left the market entirely, altering the landscape dramatically. In their place, a number of smaller builders and investors have emerged, building on individual lots in existing neighborhoods (in many instances, after tearing down older homes), or developing smaller communities of 5-10 homes.
Going forward we anticipate the new home construction market will include a healthier mix of larger builders developing planned communities, individual investors with 1 or 2 homes being built in already existing neighborhoods and smaller builders doing a little bit of both. For a prospective new home buyer this will mean plenty of choices – consider in 2012, 4,600 permits were issued for new houses and condominiums in southeast Michigan alone. Some suggest that number could grow by 35% in 2013.
So how does someone looking to build a new home, research all available options?
There is no single website that caters to all builders. If you try to search yourself or hire a re-sale agent who doesn’t have their finger on the pulse of new home construction in southeast Michigan, you’re guaranteed to miss out on some amazing opportunities. We created the New Home Experts to help solve this problem. With our database of builders, communities and developed lots, if it’s being built in metro Detroit, we know where and by whom. If you’re interested in a new home, take advantage of the current market and connect with us today – we are the areas only real estate agents to specialize in new home construction.