United States: after seven years the buildings lose share
‘’ The market for new homes is changing ‘’ these are the words that usually encourage future investors. But are the changes always positive? Indeed, it often happens that these changes in the market variables are limiting, to the point of making a buyer opt for different solutions.
But what is happening in America, it seems far from being negative for investors. In fact, the prices for new buildings have fallen by 1% compared to the average highlighted in the first quarter of 2019. This decrease, although it may be irrelevant, is actually significant, considering that there were no decreasing percentages for seven years to this part.
However, sales of new homes have also fallen, exactly 3% less than in 2018. The offer, by contrast, has increased by 5%. A lively market therefore, which, however, arouses insecurity on the part of those who intend to invest.
The small price collapse, however, according to industry experts, had already been foreseen. The demand for new homes in fact cooled as early as the second half of 2018, at exactly the same time that manufacturers began to significantly reduce prices and guarantee incentives both to real estate agents but also to buyers, who had expressed their own interest towards new projects in the pipeline.
Among the incentives and benefits, possible investors, those related to design, stand out and attract.
But how are manufacturers currently behaving?
To make prices even more competitive and meet the needs of customers, smaller lots have been designed with fewer updates of specific houses, to be added only at a later date, at decidedly advantageous prices.
Exemplary is the situation in Dallas, where supplies for new buildings have increased by 15%, already in the first quarter of 2019, especially for high-end properties.
The object of the reduction is also monetary incentives, such as design centers and built-in tents, which guarantee a general decrease in the price of the property on the market.
By doing so, builders end up putting the same exact amount of money on a network for a sale but, a cornerstone of this strategy, buyers can feel that they are appropriating a good of a certain level and at a more than advantageous price.
Accessibility to the real estate market is therefore Volta's key. Should this prerogative be lacking, there would be limitations both for buyers but also for builders - really important sellers. An impossible example not to be taken into consideration is that of San Jose, where problems arise from the lack of supplies that can allow potential buyers to become part of market investors.
Will a balance be struck between supply and demand? It is not easy to say this with certainty. But surely the American market is definitely as lively as ever!
But what is happening in America, it seems far from being negative for investors. In fact, the prices for new buildings have fallen by 1% compared to the average highlighted in the first quarter of 2019. This decrease, although it may be irrelevant, is actually significant, considering that there were no decreasing percentages for seven years to this part.
However, sales of new homes have also fallen, exactly 3% less than in 2018. The offer, by contrast, has increased by 5%. A lively market therefore, which, however, arouses insecurity on the part of those who intend to invest.
The small price collapse, however, according to industry experts, had already been foreseen. The demand for new homes in fact cooled as early as the second half of 2018, at exactly the same time that manufacturers began to significantly reduce prices and guarantee incentives both to real estate agents but also to buyers, who had expressed their own interest towards new projects in the pipeline.
Among the incentives and benefits, possible investors, those related to design, stand out and attract.
But how are manufacturers currently behaving?
To make prices even more competitive and meet the needs of customers, smaller lots have been designed with fewer updates of specific houses, to be added only at a later date, at decidedly advantageous prices.
Exemplary is the situation in Dallas, where supplies for new buildings have increased by 15%, already in the first quarter of 2019, especially for high-end properties.
The object of the reduction is also monetary incentives, such as design centers and built-in tents, which guarantee a general decrease in the price of the property on the market.
By doing so, builders end up putting the same exact amount of money on a network for a sale but, a cornerstone of this strategy, buyers can feel that they are appropriating a good of a certain level and at a more than advantageous price.
Accessibility to the real estate market is therefore Volta's key. Should this prerogative be lacking, there would be limitations both for buyers but also for builders - really important sellers. An impossible example not to be taken into consideration is that of San Jose, where problems arise from the lack of supplies that can allow potential buyers to become part of market investors.
Will a balance be struck between supply and demand? It is not easy to say this with certainty. But surely the American market is definitely as lively as ever!
