Homebuilding slows down | The Real Deal

Homebuilding slows down | The Real Deal: "By Shonda Novak | Tuesday, November 6, 2007, 02:59 PM New home starts in Central Texas were down 27 percent during the third-quarter compared with a year ago, with the sharpest reduction coming in starts priced under $150,000 where tighter credit policies are squeezing many first-time buyers out of the market, according to Metrostudy, which tracks the market. Here is the full release: Although the fundamentals of economic growth and regional demographics in most major metropolitan areas remain strong, the lingering effects of poor mortgage lending practice and investor activity have affected literally every metropolitan housing market in the United States, said Mike Inselmann, president of Metrostudy. “The downward trend of new home construction has continued through the third quarter of 2007 as builders work to reduce inventories and lay the groundwork for market stabilization that likely will not occur until the first half of 2008.” Job growth figures released by the Texas Workforce Commission indicated the Austin region added 29,500 new jobs during the 12 months ending September 2007, a 4 percent gain in employment during the past year. Unemployment remained low at 3.5 percent in September compared with the national rate of 4.7 percent."

Comments from Roland's Home Team. One of the things we are seeing from builders in select areas is the significant reduction in new home prices and the huge incentives they are offering. Many of our preferred lenders still have the ability to generate some excellent loan programs for those who are marginally affected by the tightening up of the market. New home builders in these same areas are selling at greatly reduced rates to investors. To learn more contact us at roland@rolandshometeam.com