Are Builders Ready in Richmond Hill, GA?
Are Builders Ready in Richmond Hill, GA? For two and a half years, I've been basking in the glow of interest rates that have hovered in the "threes" and a few times dropped below three. It was a warm glow that made me as a Buyer's agent feel good and toasty. My buyers could afford thirty to fifty thousand dollars worth of house more due to the historically low interest rates. This new-found buying power was not lost on many builders. The builders in our area had adjusted their inventory to reflect the higher amount of affordability. It was a slow adjustment though and only a few of them saw it coming.
The latest news is of rising interests due to good economic growth indicators. Yay America!
Wow! I just felt a chill, is it getting cooler? Where's that glow? Will I be able to bask in the glow of interest rates in the four percent range? What will builders do? That's right, builders. Like appraisals, builders tend to lag behind the market due to construction times. They need a crystal ball worse than most of us Realtors! Many builders have just pulled all their incentives off the table in reaction to this Spring's jump in activity. I recently asked a builder what happened to all the incentives that made selling their homes a "no-brainer"? The answer I got was, "We don't need incentives at this point in time."
Okay. I'll remember that in a couple of months when you're finishing those spec homes that are fifteen thousand over what the average buyer can afford. I hope the adjustment from builders happens sooner rather than later. I really hope the adjustment doesn't mean a product of lesser quality. Let's hope we can fall in love with this coming market and the new rates. Maybe I should get a tan in the sun as opposed to trying to bask in the glow of a low interest rate.. Are Builders Ready in Richmond Hill, GA?
Mark A Douglas, Realtor
Keller Williams Realty Richmond Hill
(912) 659-0096
Are Builders Ready in Richmond Hill, GA? For two and a half years, I've been basking in the glow of interest rates that have hovered in the "threes" and a few times dropped below three. It was a warm glow that made me as a Buyer's agent feel good and toasty. My buyers could afford thirty to fifty thousand dollars worth of house more due to the historically low interest rates. This new-found buying power was not lost on many builders. The builders in our area had adjusted their inventory to reflect the higher amount of affordability. It was a slow adjustment though and only a few of them saw it coming.
The latest news is of rising interests due to good economic growth indicators. Yay America!
Wow! I just felt a chill, is it getting cooler? Where's that glow? Will I be able to bask in the glow of interest rates in the four percent range? What will builders do? That's right, builders. Like appraisals, builders tend to lag behind the market due to construction times. They need a crystal ball worse than most of us Realtors! Many builders have just pulled all their incentives off the table in reaction to this Spring's jump in activity. I recently asked a builder what happened to all the incentives that made selling their homes a "no-brainer"? The answer I got was, "We don't need incentives at this point in time."
Okay. I'll remember that in a couple of months when you're finishing those spec homes that are fifteen thousand over what the average buyer can afford. I hope the adjustment from builders happens sooner rather than later. I really hope the adjustment doesn't mean a product of lesser quality. Let's hope we can fall in love with this coming market and the new rates. Maybe I should get a tan in the sun as opposed to trying to bask in the glow of a low interest rate.. Are Builders Ready in Richmond Hill, GA?
Mark A Douglas, Realtor
Keller Williams Realty Richmond Hill
(912) 659-0096
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