Very clear post....................I can tell you're not from NYC.

:)

Used Homes Will Drive Market
 

Used homes will eventually lower in price. New construction prices are adjusting , but will have to cave to whatever price point people will sell their used homes at. This will come in the form of reverse mortgage expirations, inherited homes, dual home ownership hardships and reduced rental prices that have to come.

With the high bonds attached to the new homes, are they really cheaper than preowned? Is it just a clever marketing tool the Developer uses to convince buyers to purchase new?

They’re talking about 2 different areas. Driving down Meggison to 470 is very different than the new area over the bridge by Eastport and Middleton.

Just add the bond on to the price and it’s easy to see the answer. I mean…..

The developer is/must adjust new home prices to the market in order to keep sales moving and I would assume has a significant margin to do it. The real cause and effect IMHO are those who bought in recent years as investments and are currently upside-down in value, expense and equity.

Not that easy since there does not appear to be a difference in sell price for most homes with and without bonds.

More open/common area per roof top is a factor.

But the ratio of sell price to bond cost seems to be relatively constant over time.

300-350 houses sold a month might sound like a lot but it is a lower percentage than 10, or so, years ago.

Down 15% from last year same time
 

And down 15% from the same period last year. Inventory is higher, but new home sales have decreased. This is all before October’s numbers too. It will get uglier before the sun comes up again.

This is an investor problem though. Still living the dream here

Biggest scam
 

Such a scam going on out there I had to stop and laugh when I saw this resale some owner decided that as he had bought it 6 months ago it’s now worth an extra $140 k $487,500
5298 BUCK ST
Bungalow Villa: Charlotte

There will always be people who are late to a financial party.
There will be another housing bubble in the future, but probably not in most of our life times like this past one. . .

not all preowned has the bond paid off, and I would say that a very large proportion of houses south of 44 being less than 10 years old, does not have the bond paid off. Given that most houses are very similar in size, and in the same general area, bonds aren't the cause of the resale versus new for the ex bond sales price:

This reminds me of the two different types of sales psychology from biz school:

Type A: These people don't wear shoes -> brand new market!
Type B: These people already wear shoes -> lots of upsell potential!

There are probably more "B" type customers than "A" type customers, and it tis getting to be the snow bird season where people like my wife and I came down in Dec for our annual Dec vacation, having never heard of TV, and ended up with a lot for a designer house with nothing but dirt and swamp for miles. (We would be in the A category)

But this board is full of :blahblahblah: :blahblahblah:

Existing home scams
 

Personally I had to laugh at this resale what on earth goes through your mind that a 6 month old 360 k home is now worth a 100k more ???

$487,500
5298 BUCK ST
Bungalow Villa: Charlotte
3
1484
Bed Bath Sq. Ft.
The Village of Bradford

"Much" better? Doubtful... "Better"? Probably. Many have an overinflated view of what their house is worth, due to that crazy run during Covid.

The prices are simply adjusting to reality... I doubt you'll see people doubling their money in 12-18 months again any time soon...