"Declines of over 30% in some areas"
This according to Mike Barofsky, CEO and President of Value In Land, Inc. He goes on to say:
"Over the past few years, there were 10 buyers for every 3 newly built home. Those numbers have reversed. Currently you are in a market that has 10 new houses for sale and only 3 buyers. Rising mortgage rates and the increase in gas prices are keeping many buyers out of the market."
Kaboom. The Real Estate Bubble Has Burst, Says Value In Land, Inc.
Wednesday May 31, 10:30 am ET
CHICAGO, May 31 /PRNewswire/ -- "The ride is finally over," proclaims Mike Barofsky, CEO and President of Value In Land, Inc. New Construction permits have dropped sharply. Builders who were once out bidding one another for properties are now staying on the sideline. Home sellers who once saw year over year appreciation now have to deal with declining property values. Current properties are seeing much higher marketing times and are being sold for significantly lower prices compared to just 9 months ago.
Jill McCook, a senior partner at Value In Land, Inc. says, "We have seen prices drop as much as 30% in some markets."
Over the past few years, there were 10 buyers for every 3 newly built home. Those numbers have reversed. Currently you are in a market that has 10 new houses for sale and only 3 buyers. Rising mortgage rates and the increase in gas prices are keeping many buyers out of the market.
For years McMansions were sold before the builder was even finished working on them; build a house today and you are also competing with the slightly pre-owned McMansions. Factors that contribute to selling houses such as job transfers, job loss and a high divorce rate could keep the housing inventory climbing to record heights.
Expect to see some dramatic changes in the real estate industry.
Real estate will still be bought and sold. There will still be new construction. However, the number of transactions will drop. Where the seller once named their price, buyers will soon name theirs.
Value In Land, Inc. has been a leader selling teardown and new construction properties to builders, investors and consumers. Company services include http://www.chicagolandnewconstruction.com , which allows sellers to list houses on the MLS without paying a commission.
Value In Land, Inc. corporate offices are in Willow Springs, IL. 60480 (Chicago Suburb). Value In Land, Inc. is an Illinois licensed real estate broker. The companies focus and expertise lies in teardown and new construction housing.
