Page 4 - Van Wig & Associates Newsletter ~ Nov Dec 2020 Issue

Q & A with the real estate expert
ASK ALLISON VAN WIG

NEW BUILDS UP, AFFORDABILITY DOWN

Q our life in an old A Dear Beatrice, forces them to price many used. The drawbacks may the fall when political,
Dear Allison, We
want
to
Fairness is a relative prospective buyers out of outweigh the benefits, economic, and health-
swap
however, depending on related
when shrinking the market.
townhouse for inventory creates market “Lumber prices are now where you live. abound.” n uncertainties
one in a new, single-family imbalance. As home-price up more than 170% since Conventional wisdom
home. We’re looking for increases accelerate and mid-April, adding more leans toward the notion
more square footage and supply dwindles, sellers can than $16,000 to the price that historically low interest
less maintenance. So far we pretty much get what they of a typical new single- rates help to offset high
want (if not more) and get family home,” according prices. That logic may be
haven’t seen any properties it fast. The first week of to Robert Dietz, chief what’s motivating many
that support our vision of September showed median economist for the National buyers, but it doesn’t
where and how we wish to list prices 10.8 percent Association of Home account for the fact that
live at a price we’re willing higher, and homes selling Builders. Nevertheless, by low inventory leads to high
to pay. Choices are few 12 days faster, than during late summer, year-over-year prices that can get even
and the prices extortionary. the same time last year. sales numbers for homes higher when a bunch of
Newly built starter homes If it’s a new build you not yet built were up 34 people compete for the
are available for slightly want, the issue may be percent, while 24 percent same property. All things
under our price point, but less about greed and more fewer move-in-ready homes considered, a bidding war
that’s not what we want. about builders trying to were sold. could end with a pyrrhic
We do not owe our financial do better than break even. You might like the idea victory and a welcome loss.
Homebuilders have been of having a hand in creating
Danielle Hale, chief
stability to wastefulness and busy trying to accommodate your home and controlling economist for realtor.com, Allison Van Wig
(CA DRE #00985700) is the
self-indulgence. The word high-density city dwellers the cost of doing so. In suggests that buyer demand Owner of Van Wig & Associates
is that the market is healthy; in search of lower-density addition to the location may be cooling and “could you can call or email her at:

the question is, for whom? living. The skyrocketing and layout, you can choose signal a shift in market 562-882-1581 or
- Beatrice K. cost of lumber, however, some of the materials dynamics leading into Allison@superbroker.com

Go to: www.LakewoodPrices.com

or www.LongBeachPrices.com

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