New vs. Existing Properties (Resale)
By Anthony Longo 27 12 2007
Interesting, but you have to assume that the debt and all the banks are just looking to cover risk and lossess. Anyway…its a great time to buy NEW!
Ara K. Hovnanian, president and CEO for homebuilder Hovnanian Enterprises, said this week that new homes have traditionally been priced higher than equivalent resale homes, though builders in slow-moving markets have ramped up incentives and dropped home prices to jump-start sales during this downturn.
“Now, things are backwards,” he said, “with new homes selling at a discount to existing-home levels. Homebuilders have lowered prices on their new homes much more dramatically than existing-home owners have been willing to lower prices on their homes.” He cited examples in which the company lowered the net average selling price in a couple of California communities by 28 percent to 35 percent from December 2006 to October 2007 through a combination of incentives and price drops.
Source: Inman Blog
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