Buying a brand new home is suddenly becoming a viable option for buyers moving to the Sequim area. During this past seven year recession, home builders have not been building homes. Home building just died back in 2007 or 2008. Many builders went out of business, and a number of Sequim developer/builders went bankrupt and lost their their subdivisions to bankruptcy trustees. The inventory of used homes has been shrinking as those homes have been slowly selling since 2007, and now we have a crisis. There are hardly any homes in the inventory that retirees want. Unless a brand new listing comes on the market, you may not be able to find what you want. So builders are suddenly finding buyers knocking on their doors, and once again they are getting orders to build brand new homes. It has been a seven year drought for home builders in Sequim.
Brand New Home
There is a definite advantage to a new home, aka new construction. If you have a home builder build the ideal floor plan for you, you get exactly the new home that is best suited for you. That’s a good thing. But you also don’t have the maintenance of a used home (roofing, heating, heat pump, plumbing, appliances).
The reason buyers have been buying used homes rather than have a new home built is because used homes have been about 30% cheaper during this past seven years. Buyers are willing to compromise a little to get a home close to their ideal retirement home for a 30% savings.
Brand New Home Prices v. Used
But that savings has almost vanished as the inventory has been shrinking and buyers are thinking, “I’ll just buy a brand new home or have one built, since I can’t find a used one on the market that I like.”
Even newer used homes are hard to find if we are talking about a 3 bedroom, 2 bath 1,800 to 2,200 square foot home in a nice area priced from $275,000 to $425,000. So buyers are finding that they need to consider building a home. This is a big development in Sequim. I have been watching this for seven years wondering when we will find balance again between sales of used homes and new homes.
Of course, you should exhaust all efforts to find a used home that you love, but if you are looking at homes in the MLS, and if you are having trouble finding the ideal home, you might want to consider building a new home.
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