Are Builders Winning the Price Game?
Many first time Buyers or first time Single Family Home Buyers (coming from condos) who are looking in the Maple Valley area are shopping in the 300,000 to 400,000 price range. Actually, of the 336 active listings in Maple Valley right now, there are 128 homes currently on the market-nearly 40% of the total active inventory.
In the past, it was safe to say Home buyers, while attracted to the new trends, colors and architecture of New Construction, often opted for a "used" or resale home because it was more affordable. New Construction usually carried a higher base price and then there was the added costs of installing blinds and sometimes rear yard landscaping and a fence all of which came with the "used home" but for a lower price.
But with inventory very high right now, buyers have much to choose from and will likely opt for the best bang for their buck. So let's take a look at this competitive market segment and see what's the better buy right on paper right now.
Active Listings Single Family Homes Priced Between $300,000 & $400,000
Average Price
Average square Footage
Average Price Per Square Foot
Resale
$363689
2092
173.85
New Construction
$362520
2341
154.86
So not only are buyers able to get a larger house, they are able to pay less for it than the "used" house. Not to mention, many builders are throwing in all kinds of incentives such as closing costs, upgrade options, fences and landscaping.
Maple Valley WA Broker This is what happens when a market correction is underway. Resale owners will need to come to terms with the fact Builders need to move inventory, have deeper pockets and can drop prices. New construction drives resale pricing and more often than not, a buyer will chose new over used, all other things being equal.
Current home owners in this price range who want to sell must understand their price needs to be adjusted to be more in line with New Construction prices. If they don't their property will likely just languish on the market.
Colleen Fischesser is the Broker/Owner of RE/MAX Select in Maple Valley Washington. She specializes in Sales & Marketing of Residentail Single Family properties in the greater Maple Valley area. Find out more about the Maple Valley market and area
by visiting www.MapleValleyRealEstate.com or Colleen may be reached at: 425-432-5400