Interesting story in the RGJ regarding the tight inventory supply in the Reno-Sparks market, and how it is leading to higher prices and spurring homebuilders to ramp up construction. See Construction picks up in Reno-Sparks – Declining supply of existing homes driving up prices
This year, the Builders Association is expecting housing starts to double last year’s number.
And increased new home sales are not unique to Reno-Sparks. See MSNBC.com’s New-home sales surge to fastest pace in two years
Dirtbagger
Although the improvement in anticipated new home sales is welcome news, even a doubling of the dismal new home sales over the last 3-4 years won’t make much of a dent in the local economy. Let’s also not forget the artificial constraint of foreclosure supply by the Banking community and AB 284. Also, when distressed properties are selling at a significant discount to new homes the Nevada Builders Association may be a bit too optimistic.
MikeZ
From what I see, new construction is priced a good 15%-20% above comparable equity/non-distressed sales and 20%-25% above distressed. The advertised prices seem reasonable but include nothing. As soon as you add in the “upgrades,” fuggedaboudit!
So, unless you want a custom home built to your own customs design and specs, new construction doesn’t make much financial sense to me.