In North Port, Florida the market so flooded with new homes that builders are cutting their own throats just to jump ship. All we can hope for right now is that the homes they are dumping at little or no profit will soon be sold so that the prices will normalize.
It is going to make it difficult to get the appraisals for the homes bought last year with the new prices being considerably lower than 2005. The same home we sold last year for $258,000 is lucky to fetch $220,000. Investors a walking away from their commitments and leaving the builders with a lot of inventory.
Last year, we were hard pressed to find any homes under $200,000. This year you can have your pick. Competition is fierce, and buyers are asking for more owner financing. Every house that is shown, the agent has the same feedback. "Well, you know there are a lot of choices out there, they are just going to keep looking for the most house for the least money."
Upgrades don't impress the buyers as much as price. If they can get 200 or 300 more square feet for the same money, they don't care about paying for granite countertops. At least, that is our experience right now. With gas prices so high now, proximity to work had taken on major role. "How close is it to the interstate?" is often asked.
Right now, the bells and whistles aren't selling here. They'd rather have an extra room.