Any advice on whether or not to build a spec house in this economic envirronment. I have two lots that took forever to get approvals and now that I am ready to build, the housing market is in the tank. I usually have the house sold before the rough in is done, but I haven’t started a new one in over 2 years. I am in central New Jersey and the market is soft, but not as bad as other places. I usually build what I consider a very good house, but I am struggling with considerations of what to cut to save money, and save my a$$ if it dosen’t sell fast enough.
Anyone in the same boat?
Replies
Talk to your friendly neighborhood Realtor and ask them for an absorption analysis... how many months supply of New construction is on the market now... and what was it two years ago??
I'd also be asking about where the "sweet spot" is in your market, and what your heads up competition is building that's selling....Buyers are still buying, but they are not stepping up unless they percieve positive value and you are standing out in front of your competition...