July has been another challenging month for the North Texas real estate market. While new homes experienced a rise in sales - nearly 50% over that of a year ago, existing homes slipped by three percent compared to this time last year. A definitely hit in the market.
The 2010 tax credits for homebuyers definitely did have an impact on the home buyers motivation. Homes had to originally close by June 30th to qualify for the Federal tax credits, however, this was extended to September 30th.
Mortgage rates are still at a record breaking low. And, the median priced home in North Texas goes unchanged from that of last year at $155,000. While the end of the April 30th federal tax credit may have slowed up home buying in the North Texas area, it is expected to once again pick up as home owners take advantage of the existing all-time low mortgage rates.
Whether the sales of existing homes continues to drop is strictly a matter of speculation. However, looking at the pros and cons will help lead one to a prediction in the coming months:
Preowned Home: Pros
Often the existing home is of better construction and higher quality workmanship - simply because of the fact that often times the existing home was built when materials and labor was cheaper.
There are many extras that are included in the existing home such as:
- appliances
- window treatments
- Landscaping is normally fully developed
- Renovations have often been made.
- Added character is often found in the architectural style of the home.
- Neighborhoods are established
Pre-owned Home Cons:
- They may be less energy efficient
- Building materials may be difficult to match or replace
- May need repairs and renovations
Newly Constructed Home: Pros
- Virtually repair free
- Energy efficient
- Customized options
- Less maintenance
- Modern amenities
- Wired for security
- You are able to make decorating decisions
- May have more upgraded neighborhood features such as parks and ponds
- Building materials may be safer
- Warranties on appliance and construction materials most often apply
New Home: Cons
- Often more expensive than existing homes
- Construction delays are common
- Landscape is not developed
- Resale may be difficult if the development is not fully constructed
- Overgrowth in surrounding areas may occur
- Additional costs and higher taxes may apply
As you can see there are definite advantages to both: the new and the existing home. And, it will be strictly a matter of the home buyers preference.
The 2010 tax credits for homebuyers definitely did have an impact on the home buyers motivation. Homes had to originally close by June 30th to qualify for the Federal tax credits, however, this was extended to September 30th.
Mortgage rates are still at a record breaking low. And, the median priced home in North Texas goes unchanged from that of last year at $155,000. While the end of the April 30th federal tax credit may have slowed up home buying in the North Texas area, it is expected to once again pick up as home owners take advantage of the existing all-time low mortgage rates.
Whether the sales of existing homes continues to drop is strictly a matter of speculation. However, looking at the pros and cons will help lead one to a prediction in the coming months:
Preowned Home: Pros
Often the existing home is of better construction and higher quality workmanship - simply because of the fact that often times the existing home was built when materials and labor was cheaper.
There are many extras that are included in the existing home such as:
- appliances
- window treatments
- Landscaping is normally fully developed
- Renovations have often been made.
- Added character is often found in the architectural style of the home.
- Neighborhoods are established
Pre-owned Home Cons:
- They may be less energy efficient
- Building materials may be difficult to match or replace
- May need repairs and renovations
Newly Constructed Home: Pros
- Virtually repair free
- Energy efficient
- Customized options
- Less maintenance
- Modern amenities
- Wired for security
- You are able to make decorating decisions
- May have more upgraded neighborhood features such as parks and ponds
- Building materials may be safer
- Warranties on appliance and construction materials most often apply
New Home: Cons
- Often more expensive than existing homes
- Construction delays are common
- Landscape is not developed
- Resale may be difficult if the development is not fully constructed
- Overgrowth in surrounding areas may occur
- Additional costs and higher taxes may apply
As you can see there are definite advantages to both: the new and the existing home. And, it will be strictly a matter of the home buyers preference.
