Hope for House Sales - Building Permits Down

By: Mitch Argon

Well what is the old saying - one man's meat is another man's poison? It certainly seems to be true in the realty business.

The poor builders are facing a drop in building permits which is sad news for them ......BUT great news for everyone else with a home! There have been many people and things blamed for the slow down in the realty market; one of them is the fact that builders MAY have built too many houses in the past year.

New houses are often worse competition in the housing market than the public realize. First of all they are up for sale, secondly they are empty and so the prospective buyers can move in when they want and thirdly, they are not involved in a chain so the new, empty house will not suddenly pull out of the deal or try and hurry you along.

Those are all positive selling points for you to being going up against if you are trying to sell your house in the same neighborhood. But on top of all those advantages here is the piece de resistance: everything in the house and on the outside of the house is brand spanking new!!

Now there is a decrease in building permits, many people will be rejoicing in places where there is a housing crunch that has been party due to an overflow of new houses. Places like Las Vegas in Nevada and Naples in Florida have certainly suffered from over enthusiastic building fever.

And the good news gets even better, not only are building permits down, but they are considerably down. In fact the housing starts for December dropped 38% from a year ago which took the figures to the lowest since 1993. Housing starts are also down by 25%.

Even though there will be a drop in construction, according to figures calculated on need, builders are still overbuilding. The National Association of Builders say that the number of new homes that will sell every year is about 1.8 million. But since 2003 builders have been building above that level, therefore a 'remainder' keeps adding onto the new figure giving an escalating glut of new homes.

Another factor with the large number of unsold houses is that builders are pandering to the market desires when they build. This means that housing has up sized 100% since World War 2 as people have demanded bigger and bigger houses.

However, this year, for the first time ever, single home owners have outnumbered married ones - therefore smaller homes have been sought.

If you are trying to sell your home in a market that has a lot of competition from new homes, there is one easy way to make your home stand out from the brand spanking new one. Landscape your yard. You can do it yourself - it need not be an expensive job. You can build your own patio or deck (or both) for under $8,000 apiece and it will increase your property by at least that amount in most mild climate areas. (Decks are more valued in mild areas where people can enjoy them.)

Also a landscaped front yard can absolutely transform the look and appeal of a house. Buy a gardening book, and try and visualize your yard with one of their designs superimposed on it.

Imagine a black Japanese lantern, and a little bridge in amongst ornamental trees and bushes. Or a flat lawn with a dark red cobblestone driveway flanked by fir trees. Whatever your choice of a landscaped front yard, it must beat the pile of mud and rocks that most new homes offer!

Real Estate
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Real Estate
 



Share this article :
Click to see more related articles