Don’t get me wrong – I’m not a crazy green-head, but it seems to me that when we cite new housing starts as an indicator of the ‘health’ of our economy, then something is terribly wrong with the direction we are headed. My g-grandfather’s house is nearly 100 years old and multiple generations have lived in it, yet the New Housing pundits would have us believe that this is a bad deal.

I’ve Googled my head off trying to get some intelligent information on this subject. Does anyone have any ideas? Thanks.

One of the easiest ways to get out of any repair by a warranty company is the dreaded “pre-existing condition”. Usually the first place warranty companies run to when something dies before it’s standard life cycle is over (a/c compressor, etc.). So you’re right there – the heat will exacerbate those things.

As you probably know, there are a ton of “half-sold” neighborhoods that didn’t build’n'flip in time before things went south. I wonder if we’ll see new neighborhoods pop up again, or if those builders instead focus on their current neighborhoods and try to get them sold off to investors or desperate buyers who don’t have time on their side.

Last I stepped into a new construction office, the prices were still way above the comps. I wonder if the new sales comps from investors picking foreclosures at cheap prices will further bring those new home prices down or if they’ll instead try to do the tried-and-true and keep the sales price static while throwing in a ton of incentives instead.

Interesting times

Always been the closing date in my experience…

Good point about unoccupied homes. Homes don’t like to sit empty. And they also don’t like baking in the 110 degree heat with no A/C….

But for those who are going in because they can FINALLY afford prices, which means they’ll already be stretched to the point where they can barely afford the HOA fee in addition to the mortgage payment, I’m curious how many repairs we’re going to see creep up.

A/C units on houses that have sat in a new construction lot for the past year (East of Val Vista and North of Queen Creek Rd or around the Power+Ray area) which haven’t been maintained, if run at all. Pest problems and possible termite infestations as a result of water runoff that was never noticed during a monsoon storm, etc.

Those things are invisible for the most part, even with a quality home/termite inspection. Things may be in running order for the moment, but like a car who’s engine hasn’t been cranked in a year, some things are bound to fail.

Jay, do you know if the General warranty on most new homes start from the construction date or the closing date? I’m curious if we’re going to see a wave of new buyers who are angry at the builder for not extending them the coverage others may have received?

On the plus side, I suppose most buyers are having a hard enough time procuring financing if they’re not equipped with any liquid cash or assets for a down payment. It’ll be interesting to see how things fare as the summer selling season slows a bit.

I believe you only lose the money if you sell and don’t buy.

Not sure why anyone would get upset about an opinion that is in line with people avoiding taking a bigger loss than they need to! I agree, not a great time to be selling, but clearly, a phenomenal time to be buying. We are back to prices of 2004? even earlier in some areas of the valley.

Anyone who is critical of pointing out that selling their home in this market is swimning up stream is either blind, or unethical.

Good luck in all you do!!

Jason Stevens
Own Your Own Home
http://www.oyohaz.com