If you have been thinking about building a new home now might be the perfect time to consider buying a speculation built home. Record High vacancy rates in January for newly constructed homes sit at 1,941 in Edmonton up over 63% from last year, which means great opportunity for buyers.
With more supply than demand on the newly constructed homes, there is a lot of vacant inventory that builders are holding right now. The recent slow down in new construction projects was inevitable but those houses that were underway despite the Alberta ecomomy taking a slower rate of recovery from the recent recession (add all the qualifying mortgage changes on top of it) still had to be completed. Lower demands combined with it being harder to obtain financing due to the mortgage qualifying stress test leaves more inventory sitting. Not great for home builders, but advantageous to buyers!
Conider the advantages of "Spec homes"- you get a New house no one has lived in, better negotiating potential with the over supply of inventory, immediate possession instead of waiting 9-10 months for possession. GST is included on any spec homes listed through a REALTOR. Most Builders are including incentives with sales becaue of the competition ie. full landscaping and deck, mortgage payments etc. Another bonus is you can have a real estate professional represent you on the purchase of a spec built home.
Along with advantages there are disadvantages too. Design, colours and finishing materials are already selected and may not be your ideal choice. Some builders are not including extras and don't have enough margins to discount the purchase price much, if at all. Finally, the location and lot is already chosen.
None the less this is a great option to explore if your thinking of buying a new home.
If you have more questions, or if you would like someone on your side of the buying process. Call/text Robert or Shawna at 780-907-4555. We'd love to help you out!!Posted by Robert and Shawna Eskiw on