The National Association of Home Builders known as NAHB, reports that "Housing Starts, Permits Post Big Gains in September" This is tracked by nationwide production and permitting.
That's great news for home builders.
However, in my humble opinion. I think new home builders are doing a huge disservice to the existing homeowners in the area's where they are building.
I am not one to complain. However the spread between what builders are settling homes for and what homeowners even in the same community are having to settle for is alarming and does not have to happen. Listing agents and homeowners are listing homes to low, because they do not have current information. Those who want to refinance into today's low low rates still cannot because they do not have enough equity. Many resale owners are having to sell by short sale when they do not have too. I'm just saying,builders are quick to get their product line posted in the MLS System with the base price. So that REALTORS® and prospective buyers will come see the homes and buy the product.However apparently that is where it ends. Builders do not require an administrative person to update the MLS System.They leave the listings sitting for 100,200,300 days with the same MLS # to attract more prospective buyers.
"If builders could just enter three or four SOLD Comps in the MLS System for each community that could no would be helpful to all the other homeowners in the subdivision." Recently I have been working in a neighborhood where homes are less than ten years old. Since the downturn many builders are building smaller homes on smaller lots. Even with that the builders are selling homes like hotcakes. Yet the nearby homeowners are suffering as the home values are going in the wrong direction for no reason at all. Listing Agents and Appraisers are forced to use the last comp as value. This is totally avoidable. I'll give you an example. Currently I have a home listed that is the same size as the builders most popular and most affordable floor-plan in the subdivision. That said as with all new home communities the model is the showcase. We all know that a builder showcases the Model Home to show prospective buyers what is possible if you were to choose many of the beautiful options available. Most home buyers who come in from the big builder signs or with local real agents are looking for the price advertised on the sign. Sooner or later, contracts get written, loans get approved and construction begins. Starts get reported to the NHBA.
Where the wheels fall off the cart is when the homes close. The builders do not record what homes SOLD for, what the finished square footage was, or if the home was a walkout basement. this is critical information that is needed in the local real estate community and needed by the appraisers.
Observation: appraisers are paid so little, they do not have time to track down a builder, or head to the county clerks office to get the data they need. They are not allowed to talk with anyone about the situation. They must deal with facts. What it the facts they have are wrong? Until new home builders start updating recent closings in the MLS System the resale market values will lag behind and local homeowners will have to rely on the last comp to formulate Fair Market Value. " What fair about that?"
"New Home Builders have the power to help further shore up the housing market by entering the SOLD Comparable information in the MLS Database. "
Does anyone else here on Active Rain or in the general public ready this blog post agree?
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Note: This real estate blog is written by me Peggy James and it is is my opinion and may not reflect the opinion of Exit Choice Realty 14067 Crown Ct, Woodbridge Virginia 22193.
I have been blogging since 2008 and I am a full time REALTOR® .