Newly built homes may make up a relatively small part of our overall housing market, yet I think Parker homeowners have to be encouraged by the trends we are seeing. This September, the National Association of Homebuilders reported that construction spending has turned up (“A Housing Recovery is Gathering Steam”) after its long slide. In August, the Commerce Department reported that overall sales have jumped 25% over the past twelve months. So far, so good.
Yet it’s still true that many observers (I’m one) think that these encouraging numbers would be a lot better if it were easier to finance home purchases…particularly for previously occupied homes. New homes have an advantage right now in this department. At a time when obtaining financing can be a stumbling block, there are several reasons why lenders may gravitate toward financingParker new homes.
Part of the momentum has to do with recent history. One of the main reasons for the rise in newly built home sales since 2010 has been the number of foreclosures on new homes. Many of these were built on spec, never lived in, then turned over to lenders when the original investors could no longer afford to support them. Since foreclosed homes are usually cheaper than normal sales, that lower price made it easier to gain financing approval. Added to these is the number of non-distressed new homes whose financing is available directly through the builder.
Other factors make new homes simply easier to finance. From the lender’s point of view, new homes look like a slam dunk when it comes to safety and compliance issues: if they are on the market, they’ve passed the test. New homes in Parker are usually more energy-efficient -- plus, they have been constructed with today’s buyers’ preferences in mind. No home should ever be purchased without standard inspections, but new homes can often avoid some additional inspections that might be ordered for older homes. Too, Parker new homes bypass heirloom health concerns like lead and asbestos – trimming loan-processing complexity.
Lenders as well as buyers of new homes can plan on less capital being required downstream, after the purchase, to keep properties in top shape. That smaller maintenance load makes it easier for the new owners to meet their mortgage requirements, which translates into lowered risk for lenders. More immediately, if a previously owned home is in need of major repairs – that cost can postpone or derail a loan closing.
It’s all part of why buying new homes in Parker can be an attractive option – whether you are a first timer or home-buying veteran. But it’s only one of the many elements that go into purchasing a home. Whenever you would like to discuss the tradeoffs available as the market picks up steam, I’m here anytime to go over all of your Parker homeoptions.
Author:Jason Peck Phone: 720-446-6301 Dated: September 20th 2012 Views: 1,024 About Jason: ...
Recognized as a top selling team in Denver Metro area. Nationally recognized for homes sold by the Wall Street Journal, Real Trends and Top 5 agent by RIS Media. Our goal is simple and that is to exceed our client's expectations by providing professional service, expert advice and exceptional results.
Denver’s top kid-friendly attractions. Denver is the ideal city for
"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!