Buyers taking existing homes over new construction - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Buyers taking existing homes over new construction

Properties have not increased in the past few years, according to Carl Blanchard Properties have not increased in the past few years, according to Carl Blanchard
Prices of homes are down about 15 to 20 percent, according to Blanchard Prices of homes are down about 15 to 20 percent, according to Blanchard

By Christy Millweard - bio | email

CAPE GIRARDEAU, MO (KFVS) - It's a trend that's happening both nationally and locally. Home buyers are passing on building that new home, and looking at what's already on the market, especially foreclosures.

A local real estate broker says overall he agrees with the national trend. He says only 1 percent of their listed homes are new construction. But, he says he thinks there are several reasons for that low number.

"See, we were accustomed to properties increasing in value for years and the last two or three years, that hasn't happened, it's gone the other way," said Carl Blanchard, a real estate broker.

Blanchard says buyers are taking advantage. He says the prices of homes compared to three years ago are down about 15 to 20 percent.

But Bill Dorris with MACE Construction says that might not be the best bet.

"There's a lot of pitfalls out there. You've gotten to buy a home for $40,000 and the foundation is settling, it's going to take more than $40,000 to fix it to put it back to where you can use it," said Dorris.

And money, Blanchard says is one of the big problems.

"Some people are concerned about their jobs. They may have jobs today, but they're not sure if they're going to keep jobs and how secure that job is and that keeps our market down a little bit," said Blanchard.

He also says people don't think they can get financing, and lenders are more strict.

But Blanchard wonders how much of it is based on a lack of demand for new homes, or a lack of supply.

"Several of the builders that were building homes are not building anymore," said Blanchard.

"Every once in awhile you'll see a new home going up, but compared to five years ago, it's slow," said Dorris.

"The last couple of years with the market being down, they're just not wanting to take those risks," said Blanchard.

"In the long run, it always does this, it goes up," said Dorris.

But before it booms again, Blanchard says the buyer should take advantage.

 

"You can buy more house now, than you could 3 or 4 years ago," said Blanchard.

Dorris says locally many people aren't moving up into a bigger home. He says what they're doing is spending their money on remodeling their existing one.

Copyright 2011 KFVS. All rights reserved.

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