A reader, commenting on the sky-high sales of new construction in Riverside, proposes that those sales will raise the value of existing housing stock. I’m not so sure it will because there’s been a dearth of new construction until recently and there’s pent-up demand. Over the past six months, 19 houses have sold in the Riverside School district and almost without exception, everything old sold for under $2 million and anything built in 2006 and later began at $3.3 and up to $4.970. There’s a $1 million plus gap between older houses and new and the bulk of those older homes fall in the $1.5 and below range, essentially land value.
Buyers today want new and don’t buy old, so if you don’t have new to offer, better look for a builder to unload your property on. That’s a gross over-simplification, of course and I know, I know, “your house is different”, but it works for me.