A Housing Crash

By
Real Estate Agent with Coldwell Banker-Shooltz Realty

The housing industry is more than just real estate. As seen in 2005-2009, new construction fell to the way side, taking with it the labor forces, material suppliers and the localized income that went with it. Anyone that made their living in new construction lost nearly everything they had ever worked for. Many developers lost the properties and the investments placed into those properties with curbs, streets, utilities and the general developing dollars invested. These properties fell to the bank, creating a shortage of lending funds available to continue these levels of projects.

Once property values start to fall, sellers find it difficult to keep up with the constant adjustconstructionments to their pricing against bank owned properties. Buyers look at the values created by decreasing listing prices of bank owned and short sale properties. Trying to sell a non-hardship priced home becomes almost impossible without giving it away. When there are more properties on the market than the number of buyers looking to buy, new construction projects suffer even greater.

If this excerpt from the new book, "Finding New Neighbors" is interesting to you, please drop me an email and I will send you the complete chapter.
references: wesley brooks, abc.net, bing.com

 

 

 

 

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Topic:
Real Estate Market Trends
Location:
Michigan
Tags:
housing crash
housing industry
real estate
bank owned properties
short sales
constrution projects

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Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Actually, new home construction in my area of Northern Virginia has been brisk for the past few years.  Builders reduced the prices to meet the market and compete with resales.  New home prices are very attractive for buyers in my area.

Oct 12, 2010 08:54 AM #1
Ambassador
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Frank Rubi
Frank Rubi Real Estate, LLC. - Metairie, LA
Homes for Sale Metairie, La.

Donald, seem like an interesting book Finding New Neighbors to read.

Oct 12, 2010 08:55 AM #2
Rainmaker
324,473
Surprise Arizona Realtor Jim Braun Sun City Grand Active Adult Communities
Coldwell Banker Residential Brokerage Jim Braun Sun City Grand Az - Surprise, AZ
Surprise AZ real estate Phoenix West Valley

In the Phoenix area some of the major builders are still building and I am starting to see more action in areas that had no action. I drive by a truss company quite often and the trucks are now moving and loading more now than they were 6 months ago. We need new build to pick up for the jobs numbers to change.

Oct 12, 2010 09:09 AM #3
Rainer
130,399
Jason Channell
Diadem Property Inspections - Serving Southeast Michigan - Troy, MI
The House Sleuth

That crash was ugly here in Michigan. I'm glad other states were not hit as bad.

There is one of those "Coming Soon" signs in front of a field near my house, announcing a new community of houses. The sign has been up since 2006.

Oct 13, 2010 10:23 AM #4
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Rainmaker
362,124

Donald Horne

Associate Broker, Oxford / Lapeer Homes
Lake Orion to Lapeer, Your Local Realtor! Questions?
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