TAG April Newsletter
Do We Have a Housing Shortage?
Do we still have a housing shortage? It depends on whether you are selling a resale or new construction. The national news can be doom and gloom with rising interest rates and war stories of falling home prices out west. You may have also heard someone say, "My interest rate is 3%. There's no way I'm going to buy a more expensive home with a 6% rate."
For some, that is true. For many others, they are willing to take on a higher monthly mortgage payment. Most custom home builders have so much work they can pick and choose who to work with and what project they want to take on. Many of them are six to nine months out before starting the next round of projects. Custom builders have a lot of options for who to work with.
The larger builders are offering a lot of incentives. Right now, just over 300 of the 799 homes on the market are new construction in Madison County and ready to close. There are an additional 439 new construction homes that are either proposed or under construction. Of the 605 homes that closed in March, 204 of those were new construction. New construction is selling about 66% of their ready-to-sell inventory each month, whereas resale homes are selling close to 80% of their inventory each month. Much of the new construction is happening on the outskirts of Huntsville or Madison. The builders feel more competition for the love of the next buyer than they did last year. They will buy your rate down, pay closing costs, and may even offer up to $20,000 in total incentive packages to buy a new home. And, we are seeing something that has not happened in three years. Some of the builders are negotiating on price if you catch them in the right mood on the right day.
Back to the housing supply question. The quick answer is YES! We currently have 799 active homes on the market that are ready to buy and close within 30-45 days. We have another 400+ that are under construction or proposed construction. We sold 605 homes in March, which means we have less than two months of inventory. Our average days on the market are under 40; multiple offers still happen from time to time, and new people are relocating to the area every day.
- The Abercrombie Group
What's Happening in Huntsville?
- 30-Day Pickleball Challenge - Raise your Paddle for Raise Your Hand
- Family Fun Farm Day @ Haven Farms
- Pup Palooza
- Rocket City Trash Pandas Season Opener
- Disney On Ice @ Propst Arena
2915 Eastern Shore Drive Owens Cross Roads, AL 35763 | MLS 1828560
Welcome home to the highly sought after Eastern Shores neighborhood of Hampton Cove. You'll instantly feel at home as you enter into the inviting foyer, leading you into your oversized living room with a fireplace and beautiful trey ceilings. Enjoy your morning coffee and relax in your cozy screened in porch.
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