dothanhomesearch.com

By: Charles Woodall


http://www.c21keyrealty.com

According to the National Association of Home Builders, sales of new homes nationwide were off 15.8% in May compared to 2006. Based solely on the number of permits issued, the Dothan market is not much better. In 2006, which was a record year in the City of Dothan for the number of new home permits issued, there were a total of 614 permits issued. As of June 22, there have been only 179 permits issued for the year, compared to 298 permits for the same period in 2006. This represents a decrease of about 40%.

In addition to fewer housing starts, completed homes are taking longer to sell because of increased inventory. It was pretty much unheard of 18 months ago for a new construction home to not be sold before completion. Today, there are homes in most new subdivisions that have been sitting completed for three to six months, some even longer. A huge influx of available lots in the dozen or so new developments around Dothan will be hitting the market very soon, which could put even more pressure on a precarious situation.

The immediate reaction from the home buying public would probably be that there are deals to be made and steals to be found when attempting to purchase a new construction home here in the Dothan area. Don’t jump to that conclusion. Established builders are holding firm and are selling close to list price. With the increasing cost of materials, there is just not a lot of wiggle room on price in most cases. It is also worth noting that new home prices here are?among to the lowest in the state already. Keep this in mind when you are negotiating with a builder. A Win-Win situation always works to the advantage of all parties.

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