Tags: Business News, Community & Outreach
June 02, 2014If you haven't already noticed, new home construction is back in full swing in our area.
Everywhere you go in Forsyth County and North Fulton, there are trucks carrying lumber and building supplies to new home sites.
This activity is only going to increase as we head further into summer.
According to information from the Multiple Listing Service (MLS), approximately 20 percent of sales year-to-date have been new homes in Forsyth County, 5 percent in North Fulton have been new.
The actual number is quite higher due to the fact that pre-sales don't get entered into the MLS.
Either way, the percentage of new home sales will continue to rise as more homes are built.
Unfortunately, with all the new home construction many home buyers are priced out of the new home market. The average sales price year-to-date for new construction in Forsyth County is $345,920 and for resale inventory the average is $310,445, a difference of 10 percent, which doesn't seem that significant.
However, only 10 percent of new home sales are under $250,000 compared to 26 percent of the resale inventory.
In North Fulton the difference is far greater.
The average sales price for new homes is $659,651 year-to-date compared to $408,398 for existing - a difference of 38 percent.
As if you didn't know, there are no new homes in North Fulton available under $250,000, but 9 percent of existing inventory sales fall into that price range.
So, what does all this mean?
To the buyer who says to themselves they absolutely want, must have, will only consider new construction; then you know you'll be buying in a higher than average price range to get what you want. But to the buyer who isn't sure, you'll have to ask yourself if having something brand new is worth a premium over an existing home that may offer more square footage, a larger lot, finished basement and mature landscaping for less money.