Dear New Home Builders, please show some restraint

    New Homes, nothing quite like them and we sell them, a lot.  We have our relocation clients that come in from out of Success in Real Estate With the Paris911 Teamtown to go on one of our Paris911 at RE/MAX New Home Tours with our agents.

    Some of the new Santa Clarita Valley Housing has Mello Roos – extra assessments that the new homeowner has to pay that covers schools, public facilities, and emergency services.

    It’s kind of nice knowing which ones have them and how much they are before heading out and falling in love at first sight 🙂

    Overbuilding dangers

    In the Santa Clarita Valley Cities, and in the rest of the world, there is always a “danger” of overbuilding.

    Building too many units, so many so it is the next “big problem” in the real estate market. Thereby the new home builders need to exercise restraint when building current and future developments.

    Here is a clue…

    The danger comes in when the market starts to flatten out, as we have seen recently. When we have a nice comfortable 6 months of real estate inventory and when buyers are buzzing and resale is closing at around 300 units a month (March 21 to April 21, 2014 – SCV numbers of units closed).

    Then, all of a sudden, the New Home Builders decide to start building new homes hand over fist. That causes the “resale market to dip”, this creates too much supply that cannot keep up with the “flattening out” demand from the real estate buyers.

    More real estate to choose from

    We have seen the market “slow down” a bit recently, in the ways of the days on market (DOM), increasing through the Santa Clarita Valley Cities. This was the impact by the more units on the market for sale in the SCV cities, giving buyers more to choose from.

    Days on Market a factor

    Average Days on Market Timeframes are floating around 60ish DOM before a Valencia CA home sells.  This of course, changes depending on location, location and location. But, the average is around 60 days in Valencia CA.

    Ask the Top Producing Realtors

    Hopefully, the new home builders will do their “studies”, create their charts and graphs and ask for advice from the Local Real Estate Experts that list and sell resale homes like nobody’s business.

    Even with that kind of transparency, it’s going to be a tough shot to call for anyone, new housing, resale homes, etc..

    Be safe – thanks for reading our latest update on our Santa Clarita real estate blog and check out our Top Housing News website for more info.

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