Finally an Article About the Jersey Shore
There are some comments from Kara Homes at the bottom of the article.
"For now, Stephen and Jaime Dane are living in a summer rental in Avon. Their new four-bedroom home at K. Hovnanian Homes' Manors at Metedeconk development in Jackson is under construction.
"Right now, it is a big hole with some bricks around it," said Stephen Dane, 32.
The Danes put down a deposit in February and expect to move into their home in January. Some may say it was a great time to purchase a new home. The builder, working with its own mortgage company, gave the Danes a $10,000 credit for improvements inside the house and another $10,000 for upgrades outside.
"We have a nice big home," Dane said. "We were happy with the incentives that they gave us."
Once red hot, the market for new homes in New Jersey has begun to cool."
posted by Little_Silvered at 7:03 PM
7 Comments:
WOW!!!! The builder is giving $20,000 in incentives to the buyers.What a deal!I hope they plan to live there for a long time and stay away from creative financing. I can't believe people are still buying in this market!
If you knew just how much some of these builders really made, you'd realize $20,000 is nothing!
These are the kids from shop class, driving BMW's.
They learned from a guy who wore a belt and suspenders, which he adjusted with the three fingers he had left on the right hand.
good topic....how much does a builder make on a house like the one from Metedokonk Lakes? for example a $540000 house ? Is it 250K ? more ? less ?
can it be found in their financial statements ?
-1200 sqft
In such a rapidly changing market, I wonder what the value of the house will be in January 2007 when they close. Wonder if those incentives will look good then.
I suspect that 20K in incentives from a builder doesn't go very far. I've seen plenty of the brochures from these developments and all the extra "add ons" are inflated like fat b@stard's belly !
They'd be lucky if they could get one room tiled with that and maybe a few shrubs planted outside.
-1200 sqft
From the NYT:
Sales of existing homes fell in June for the eighth time in the past 10 months while home prices edged up at the slowest pace in more than a decade -- more signs that the housing market has slowed dramatically.
The National Association of Realtors reported Tuesday that sales of previously owned homes and condominiums dropped 1.3 percent in June to a seasonally adjusted annual rate of 6.62 million units.
The median price of a home sold last month was $231,000. That was up 0.9 percent from June 2005 and represented the smallest year-over-year price gain since May 1995.
The 1.3 percent decline, which was in line with expectations, represented the third drop in a row and the eighth in the past 10 months as the nation's once-booming housing market has shifted to a slower pace in the face of rising mortgage rates.
By region of the country, sales fell 3.5 percent in the Northeast and 2.3 percent in the South last month. Sales were unchanged in the West and the Midwest.
The inventory of unsold homes rose to a new record of 3.725 million units, which is a 6.8 months supply at the June sales pace.
Analysts believe that the growing level of unsold homes will further depress prices in coming months.
These bogus "incentives" are a sucker trap. If a builder is offering to give something away, you can be assured it isn't really anything they wouldn't be prepared to throw in to seal a deal anyway.
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