Davidson Realty, Inc.

Pros and Cons: New Construction vs. Resale

July 2, 2021

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Posted by in New Home Construction, Northeast Florida Market Trends

Owning a home is likely more difficult now than ever before. With the slim inventory of homes for sale, homes are FLYING off the market. From the rise in home prices to competitive bidding wars, homeowners have to wonder: is it worth just buying new construction?

 

“This question is tough to answer these days. The inventory is slim and prices have gone up on both sides. For most buyers, timeline is the key decision driver when choosing between new construction or an existing home,” shares Davidson Realty agent Shelley Nemethy.

 

 

Pros of Building New Construction 

  • Newness – When buying new construction, you’ll be the first to call this house HOME! Buyers buying new homes enjoy the peace of mind of having a warranty through the builder and fewer renovations.
  • Design – New construction homes also often feature more modern architecture and floorplans. You’ll find more open floor plans, additional bathrooms and spaces that can adapt to the needs of your family. New homes will leave you and your family only to make minor modifications, if any, to feel at home.

 

Cons of Building New Construction

  • Supply Shortages – Due to the Covid pandemic, many industries have experienced limited supply, delays, and labor restrictions. This has trickled down to impact home building as the cost of lumber, metal and other supplies have been affected by the pandemic. In turn, the decreased supply has increased cost which of course is passed along to the homebuyer.
  • Longer Timeline – With a new home build, homebuyers usually have to wait months to get into a new home. With the current shortage of supplies, there is an even greater risk of delays. Some homebuilders limit the number of lots available for sale in an effort to keep on schedule. “If you have time to build, you have more time to save money for closing costs,” shares Davidson Realty agent, Terri Apodaca.

 

Pros of Buying Resale

  • Shorter Timeline – When buying a resale, the closing day is often negotiated in the offer. Typically, new home owners gain possession in one to two months after their offer is accepted.
  • Character – Existing homes generally have more traditional layouts and features that elevate the home. These charming touches provide a unique dimension to an existing home.
  • Location – “Older homes are often in areas more convenient to metro areas and in more established neighborhoods with more development surrounding. Yards are typically more spacious with mature landscaping. Buyers also won’t have to worry about the congestion of construction taking place,” shares Apodaca.

 

Cons of Buying Resale

  • Competitive Market – With so few homes for sale, most homes are receiving multiple offers. Prospective home buyers have to be patient, persistent, and ready to make their best offer quickly to achieve their dream of owning a home.
  • Increasing Home Prices – As a side effect of the low supply and high demand for homes, home prices have skyrocketed making it harder to afford a home that would normally be in reach.
  • Home Improvements – Often buying a resale comes with a few compromises. Upgrades, remodels, and projects could be on your to do list after closing to make your new home the home of your dreams.

 

If you are interested in buying or selling in Northeast Florida, trust the real estate experts at Davidson Realty. Davidson Realty has more than 30 years of experience and has built strong relationships with many of Northeast Florida’s leading home builders. This advantage along with their extensive experience buying and selling resale homes, make them the perfect partners to help you navigate the real estate market. For more information, contact Davidson Realty at (904) 940-5000.

 

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The Real Estate Market: How Long Will This Go On?

June 28, 2021

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Posted by in New Home Construction, News, Northeast Florida Market Trends

The story of the real estate market has kept most real estate professionals and home buyers and sellers on the edge of their seats. With such unprecedented and unpredictable times, the biggest cliffhanger is: How long will the real estate market stay like this? 

 

There is no doubt that the real estate market has remained strong for longer than most predicted. “I believe the housing market could remain strong for a while longer. Currently, there is only a 1.1 months supply of homes available in our area. When a balanced market is between 5 to 6 months of inventory, it is clear that demand is still very strong for homes in Northeast Florida,” shares Sherry Davidson, President of Davidson Realty. Additionally, home builders have been building fewer new construction homes since the Great Recession which equates to 4 to 5.5 million fewer homes built, based on historical averages. 

 

As the market has continued to stay strong, more people are getting more “comfortable” with the current real estate market conditions. “Three different surveys indicate more sellers plan to put their homes on the market. This, coupled with homebuilders increasing the pace of new construction, will help increase the supply of homes for sale,” shares Davidson. “Interest rates may rise slightly which may slow demand. I predict we will see more normality in the real estate market by the end of this year or 2022,” Davidson continues. 

 

Because of the increased demand, home prices have been on the rise! “We have been seeing double-digit price increases during this time in the real estate market,” shares Davidson. The National Association of Realtors Chief Economist, Lawrence Yun, predicts we will see median existing-home sales prices increase more than 7% in 2021. 

 

With the increase in home prices, those who have taken advantage of this seller’s market are finding it difficult to buy a new home. While some secured a home prior to selling, many are seeking rental homes or staying with family to buy some time. “If you want to avoid the multiple offer situation and frantic pace of the market, we may see less craziness as we get more inventory. Regardless, now more than ever before you need a real estate professional to help you navigate the market,” shares Davidson. 

 

This time in the real estate market will likely be a period that will go down in history as a story full of twists and turns. If you or someone you know is interested in buying or selling their home, contact the Northeast Florida real estate experts at Davidson Realty today at (904) 940-5000. 

 

 

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NORTHEAST FLORIDA BUILDERS ARE TRYING TO KEEP UP WITH THE DEMAND FOR NEW HOMES. HERE’S HOW SOME BUILDERS ARE MANAGING THE PROCESS.

June 23, 2021

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Posted by in New Home Construction, News, Northeast Florida Market Trends

Persistence and patience are the name of the game in the current real estate market as every corner of the industry has been rattled by uncertainty as a side effect of the COVID-19 pandemic. 

 

“The Northeast Florida real estate market is as hot as many in our industry have ever seen,” shares Davidson Realty President, Sherry Davidson. “There are not enough homes on the market to satisfy buyer demand. Resale homes coming available are getting multiple offers usually within hours to a day and offers are mostly above list price. In May of this year, more than 41% of homes closed were over asking price,” Sherry continues. Even the new construction housing market has experienced challenges that are requiring home seekers to adapt. We’ve connected with some of the talented home builders in Northeast Florida to get an update on their current conditions. 

 

Riverside Homes

“Riverside Homes continues to see very strong demand and we have made a few changes to our process to ensure the very best quality homes and provide the great building experience the people expect from Riverside Homes. We limit the amount of sales in each of our communities so we can keep a smooth process for permitting and building our homes. We closely monitor increasing supply costs each month doing our best to offer the most competitive home pricing,” shares Riverside Homes Sales Manager, Jacki Matthews. Despite the building supply shortages plaguing builders across the country, Riverside Homes promises to maintain the integrity and quality of their homes. 

 

Ashley Homes

Ashley Homes experienced a surge in sales and are currently sold out in Silverleaf, and have been since February 2021. “During the pandemic, we had no limits on sales and sold everything that we had available. Ashley Homes includes escalation clauses in many of our contracts, as do other builders, to protect us and our buyers from unforeseen lumber and material increases. Our buyer may pay a modest increase just to cover the rising material costs, but Ashley Homes has no profit added, shares Ashley Homes’ very own Greg Souris. Ashley Homes is navigating the home building process with their buyers, many who have seen more than $40,000-$50,000 increase in their home value before their home construction even started. 

 

Providence Homes

“In E-Town we are not limiting pre-sales or inventory homes, however, some of our policies have changed on when we can release inventory homes for sales. In Nocatee, we are limiting the pace of sales so we can manage the construction process,” shares Brenda Harris, Sales Associate at Providence Homes. Build time is approximately eight months, but Providence Homes is asking for flexibility and understanding from customers as material shortages could cause delays. 

 

MasterCraft Builder Group

Brad Shee, MasterCraft Builder Group President, shared, “The shortage of materials began in March 2021 as suppliers burned through inventory. Based on the lumber futures chart, lumber prices should start dropping. Because of the shortages, MasterCraft Builder Group is limiting sales each month in TrailMark and Rivertown.” The demand for homes in Northeast Florida is unprecedented, but it’s no surprise as the attraction to the First Coast is clear from the ocean to the river to the affordable cost of living. 

 

With more than 30 years of experience, Davidson Realty has cultivated strong relationships with some of the area’s leading home builders in Northeast Florida. Davidson Realty Agents know the new constructions market in Northeast Florida and can help you find the perfect lot and design to fit your needs. “Our agents are constantly talking to builder site agents to stay current on which builders have inventory and how they are managing the sales process. This constant communication allows our agents to know if a sale falls through, what is available, and the timing and process of the homesites that will be released so our clients can take advantage,” shares Sherry Davidson. 

 

The real estate experts at Davidson Realty will be by your side throughout the construction process to ensure your expectations and vision comes to life! For more information on new construction homes in Northeast Florida, call Davidson Realty at (904) 940-5000.

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Spring Webinar Line-Up Features Joy Bryant with the St. Johns Housing Partnership on “Helping Homeowners” and Sherry Davidson & Jock Ochiltree on “Why Relocate Here”

February 28, 2011

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Posted by in Events, Webinars

Davidson Realty is offering two new real estate webinars in the coming weeks.  These free, informational seminars are offered on-line so you can log-in right from your computer, join in the discussions and ask questions of the experts.  Can’t attend the webinar but want to hear the information? Visit our webinar library any time to view previous webinars at your convenience: http://www.davidsonrealtyinc.com/webinars.

March 24th at 2 PM: “Helping Homeowners” Webinar
Joy Bryant with the St. Johns Housing Partnership has helped many St. Johns County homeowners who are having difficulty making their mortgage payments. She works with residents to help determine their best course of action and works with the lenders to help the homeowners remain in their homes. Joy will share some of the ways she may be able to help someone you know.
Visit https://www1.gotomeeting.com/register/440880745 to register.

April 21st 2 PM: “ Why Relocate Here” Webinar
Davidson Realty President Sherry Davidson and Davidson Agent Jock Ochiltree will present all the reasons to call Northeast Florida home – weather, water, attractions, communities, sports, shopping, and more! Whether you’re already considering moving to Northeast Florida, or you’re simply exploring your options, you won’t want to miss this one.
Visit https://www1.gotomeeting.com/register/435896392 to register.

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