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First-time buyers driving changes in new home building
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Kathleen M. Howley and Daniel Taub wrote an interesting article for Bloomberg.com about the changes taking place in the home building industry in response to first-time buyer concerns. Builders used to install granite counters, whirlpool tubs and stainless steel appliances to lure buyers, but now first-time buyers have become more interested in the bottom line.
Enter the "no-frills" home, geared to first-time buyers who, thankfully, are more concerned with buying a home they can afford than one which impresses everyone.
According to this article, "sales of new homes costing less than $200,000 jumped to 47% of all transactions in June, up from 39% in May. U.S. Commerce Department figures show that homes under $200,000 accounted for almost half of the sales in the first six months of 2009."
The article goes on to report that builders are modifying their plans to create smaller homes with flexible floorplans which include rooms which can change their function over time from a home office to a nursery or a playroom.
First-time homebuyers are driving the market these days because they are hoping to claim the $8,000 federal tax credit and because, without a home to sell in a down market, they have an easier time making an offer on a home.
For more insight into buying the right home in tough times, order "HOMEBUYING: Tough Times, First Time, Any Time" from Capital Books.
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