New construction in ETenn

[Thern Newbell]

Anybody know of any issues with new construction in East Tennessee that they have come accross? I am referring to incentives to buy (i.e. personal property, vehicle leases,etc). I have not heard of a lot of that going on here (excepting tradition in Sevier county of course).

 

[Pa'akai]

None in Monroe and surrounding counties that I know of. Mostly standard "paying closing costs". a few weeks ago we had 114 new/spec. homes on the market in Monroe County but stiff not a whole lot price dropping with the exception of builders with too much inventory. Even then the price drops are not a whole lot

 

[TN Pro]

With my Realtor hat on, i was trying to find my inlaws from White County a new construction house in the Knoxville/Corryton area. Thats was 4 months ago. The sale on their own house fell through, so we stopped searching. Now, last week, they have a contract on their house, so we are looking again.
Guess what, ALL of the same new construction houses on the market when we first looked are still on the market. Many have been pulled, then relisted the next day In order to keep the DOM down. But, when pieced together, a lot of them are well over 200 DOM.
In my opinion, many new construction purchase agreements have much creative financing going on to the point where i dont do them anymore.
In certain areas, especially out where i am at, the market has fallen out of the new construction business. Many builders are quite literally giving these homes away.
So, we are left with new subdivisions where the first people to buy a few years ago were paying 200k for a home, the last batch of homes with the same floor plans are now selling for 150k.
Also, i am personally seeing a huge influx of foreclosures on houses that were built in the last 2 years.

Dean

 

[RSW]

New construction in West Knox County is pretty slow. I've seen builders that are reducing their listing prices 10, 15 to 30% in order to reduce their inventory. This seems to be the case in the higher end homes while homes below 200K are moving ok. Existing home sales are pretty stable. Go figure. I did a search of my subdivision for sales dating back one year and compared it to sales of a year earlier and found prices have increased an average of 13%. An adjacent subdivision increased 11% on average. This is in West Knoxville homes 25-50 years old.

 

[Thern Newbell]

Guess what, ALL of the same new construction houses on the market when we first looked are still on the market. Many have been pulled, then relisted the next day In order to keep the DOM down. But, when pieced together, a lot of them are well over 200 DOM.

Dean

When I list DOM on my reports, I try to cite all of the listings that go into the DOM. It's getting hard to squeeze all those multiple listing #'s in that little space. It's surprising to me now in some markets when I find a recent sale that only has one listing with no expired or withdrawn listings preceeding it, and that has a DOM less than 180 days. One question though. When you have multiple listings within a given time frame, but they are not consecutive listings (i.e. listed for six months...off market for three... and listed again for another four months before closing), do you count the sum of all the listings for the DOM? I have been, in some cases, counting the most recent listing (when there are gaps of at least a month), but adding text in the comments mentioning the other unsold listings.

 

[TN Pro]

I basically write a comment addendum when there are multiple listings, stating each listing seperately. Sometimes its a real long addendum.

 

[RSW]

Same Here........

 

[Jeff Noah]

Haven't been on here in a while. We haven't had any type of incentives come up around claiborne county either. New homes aren't selling well at all though. The builders refuse to listen to what I say and put to much money in their houses and have to sell them for to much resulting in long listing times.

 

[RSW]

Hey Jeff,

Where have you been?

Scott

 

[Jeff Noah]

Summer is here. Our garden won't work itself, even though sometimes I wish it would. I believe my wife and mother went a little overboard with it this year. I had to plow up a lot more to get everything in it that they wanted to plant.