Real Estate News for Sunday, September 23rd, 2007

This is probably my favorite time of the year. The air is brisk and leaves start changing colors. In real estate though, this is when things typically start to slow down. The kids are already starting school and nobody likes moving right now. But that means the people who are calling the office and asking about real estate are usually pretty serious.

Did anyone read the CNNMoney.com article about builders launching campaigns to sell of their large backlog of houses? Well its definitely true. I'm always visiting the new homes and there are great incentives. Some are even having 3-day sales where they slash their prices by almost $100,000. Previous sales primarily offer non-cash incentives, like upgrades. I think we'll start seeing more steep price discounts. The builders have avoided lowering prices because of concern for buyers who had earlier purchased those homes at higher costs. What does this mean for resale sellers? It means those who are not priced competitively will not be able to sell their homes. The new homes have very pervasive marketing, sign twirlers, balloons and flags, and let's not forget gorgeous new model homes to wander through, complete with ice cold bottled water in their stainless steel fridges and freshly baked cookies in their matching double ovens. Can resale homes compete with that? Not to sound negative, but its highly unlikely.


Things can change drastically in just a decade's time. In the late 1990's median home prices were approximately 3 times the median household income. Now the median home price is 5 times the median household income. Yes, it IS more difficult to afford a home now. If you want to read more, click here to get the article from the NYTimes.com.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com