New construction coming back?

That’s what this article in Stamford Advocate says, but the examples cited are Fairfield and Bethel, where prices are cheap. Still, there seems to be a lot of interest in new homes here in town, both custom and spec houses. Most of the existing spec houses haven’t sold for a reason, hence the interest in custom, but if builders can start finding financing again. I think the market’s there.


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11 responses to “New construction coming back?

  1. Bob

    But I keep hearing that there are many builders with cash and no contingencies for lots/land below $2.5 million. Is this true?

  2. Bob

    How about non-builders/ end-users for the below $2.5 million market. Are there many with all-cash, no contingencies?

    Are there really that many cash buyers (as agents keep claiming) or is it just a small percentage of buyers?

    • no, but they tend to have already sold their houses or have them under contract and qualify for conventional loans so they can still buy. There may be some all-cash buyers out there in the lower market and if agents are telling you they have them, ask them to bring them on. In my admittedly limited practice, it’s the high end folks who are all cash, not the lower (although I do have one land buyer who fits that category).

  3. Bob

    Unless I am misunderstanding your response, I thought conventional loans are below $400K. So those buyers put more than 80% cash. That is still a very high percentage of cash.

  4. Bob

    Just as I thought…so the “lower market” means below $1.5 million? $1 million?

  5. Retired IB'er

    Going on memory, which is always dangerous, the max. jumbo conforming loan (ie- Freddie/Fannie eligible) is around $720,000 to $730,000 in the highest MSA’s.

  6. shoeless

    $729,750 for non-Alaska, Hawaii, and Guam.

  7. Retired IB'er

    Actually, it looks like the limit for jumbo conforming in 2010 in Fairfield Cty. is $708,750.