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Realty Executives & Luxe Homes

Is Building Right for You?

Realty Executives & Luxe HomesNews programs keep talking about the “low inventory” in the housing market. What does low inventory mean to a buyer or seller? When the housing market first took a downturn, many buyers were reluctant to purchase a home. Slowly, the market has improved, and the predictions for the 2015 housing market are trending for continued growth.

As interest rates continue to hover at historically low rates, the buyers that have remained on the fence have abandoned their fence post and committed to searching for their dream home. Christopher Thornberg, principal at Beacon Economics, said, “We expect sales and price appreciation to pick up steam this year. Existing homes sales should rise over five million, and prices will accelerate some – probably close to double digits by the end of next year.”

Sounds great, right? Low rates, lots of buyers. So what’s the problem? The problem is that many of the buyers actively searching are uninspired by our current inventory. They’re waiting for the spring market to bring fresh and exciting listings. Until the spring market officially commences, there’s an unprecedented bidding war for move-in ready, accurately priced listings. Homes are selling within days, and these sellers are left in the same precarious circumstances. Where do they move when none of the houses on the market are appealing?

The answer? Build. Why build?

  • Take advantage of historically low interest rates!
  • After the housing market crashed, banks were hesitant to loan for products as risky as construction loans. Buyers are surprised to learn there are many affordable options, such as land loans, construction loans using your lot as collateral for your down payment, even one-time closes.
  • Prices on building materials are increasing – lumber, concrete, labor – all of these increases have incremental impact on your bottom line.
  • If you don’t like the options available, build a home that fits your family’s needs.
  • The one commodity in real estate that can’t be replicated is land. There are some amazing opportunities to build in some of Knoxville’s hottest neighborhoods, but the best lots are being snatched up quickly, and we can’t make more!

If you would like a no pressure, free consultation to discover if building is the right path for you, contact us today.

Christine Sparks
Realty Executives & Associates

Jenny Blalock
Luxe Homes & Design

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