There is a healthy inventory of Sequim homes for sale, although the best homes in the best areas at the best prices are selling while the majority of Sequim homes for sale in the MLS have too many DOM (days on market). But one other segment of the market is new homes. I’ve been asked, “Are retirees building new homes in Sequim?”
Sequim Homes for Sale – New Construction
Sequim Homes for Sale Compared to New Construction
There are very few new homes under construction in Sequim this summer, perhaps only 8 homes. Why? Because the cost of buying a lot, getting permits from the county or city, bringing in utilities, excavation, and construction are almost certainly above the current listing price of comparable Sequim homes for sale. There are some costs over which builders have no control. They have no control over material costs, permit costs, and only limited ability to negotiate with subcontractors, who are already operating at low margins.
Sequim Homes for Sale – The Biggest Cost in New Construction
New construction incurs a cost that current Sequim homes for sale do not. The cost of raw land is still too high in Sequim and Port Angeles to make building competitive with existing homes. In Pierce and King County on the Seattle and Tacoma side of the pond, big builders can purchase developments in foreclosure for as little as $15,000 to $20,000 per lot. Not possible in Clallam County, where lots have been $80,000 plus, and only recently have we seen many developers being forced to lower prices even below their costs, but that still has meant lots at $50,000, plus or minus. That still has made it mathematically impossible to buy and develop a lot and build a new home at competitive prices of existing homes.
But some retirees are still building, because they cannot find the ideal home with the floor plan they want, the kitchen design, and a location and view they really want with existing Sequim homes for sale. And these retirees are willing to pay a little more than comparable prices of existing homes.
It really boils down to what you want and how much it means to you to retire and live in the home of your dreams for the rest of your life. In other words, how much is it worth to have the perfect home for the rest of your life? An extra $30,000? $75,000? This is the analysis many retirees are going through when they start looking at Sequim homes for sale.
Update as of 4-29-14: This article was written 957 days ago, and the market has improved dramatically, and builders have not been building fast enough. The inventory of Sequim homes for sale is shrinking, and many retirees are having difficulty finding their dream home.
Last Updated on April 29, 2014 by Chuck Marunde
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