Monday, February 25, 2008

Bargain for Buyers as New Construction Prices Fall

Buyers Broker of Florida a buyer agency office, has sold many new construction homes in 2007 as builders are offering competitive prices that draws buyers back to consider new vs. resale. Eve Alexander with Buyer Broker of Florida has been reported in CNN Money Magazine, and Kiplingers Financial.

According to Orlando Sentinel, new-home prices in Orlando-area subdivisions are down more than 8 percent since late 2006 and are heading lower, according to a survey by Charles Wayne Consulting Inc. in Orlando.

The company's report, published this month, was based on surveys that compared production-home sales prices from the third quarter of 2006 to those in the third quarter of 2007 in Metro Orlando. It found the average dipped from $388,700 to $358,600.

But prices have continued to fall since then. "Preliminary results from year-end research indicate a continuation of the overall decline," the report stated, as builders discount their unsold, or standing, inventory."

Lower sales prices will likely continue well past the end of standing inventories," the report concluded, noting that "many buyers simply will not have the same financial/borrowing capability as before, and therefore will be buying smaller and less-expensive [homes] in the future."

New homes sold in the Sanford and Lake Mary area posted the largest percentage decline, the survey found, falling 19.2 percent to $297,200. The Apopka area was the only market to show a slight increase: sales there rose 0.1 percent to $365,600.

The Maitland and Winter Park submarket had the highest average, $516,600, but that was down 13.1 percent from a year earlier. Prices in the Winter Garden, Ocoee and west Orange area were down an average of 11 percent to $360,700; Kissimmee- St. Cloud prices fell 10.8 percent to $316,500; the east Orange/University of Central Florida area was off 8 percent to $$351,800; Dr. Phillips- Windermere was down 7.9 percent to $421,500; and the Casselberry, Winter Springs and Oviedo submarket was off 1.4 percent to $421,400.