DeBordieu New Construction vs Older Homes

“New-Home Prices on Fire” is the title of an interesting article I read in the Wall Street Journal this week.   When I read these real estate articles, I like to compare the national trends to what is going on in DeBordieu, the gated, ocean front residential community just north of Charleston, SC, where I sell luxury real estate on site.DCIM119MEDIA

The article, written by20150323-DSC_8091 Kathleen Madigan, included research by TD Securities. It stated “new homes generally command a 10% to 20% premium over existing houses because new construction tends to be of higher quality and have more up-to-date amenities, the TD economists said. But by 2014, the price gap between new and existing houses had widened to 40%.”

In DeBordieu, I compared a 3200 sq. ft. home that sold earlier this year to the brand new home of the same size featured in the pictures on this page. The older home was built on a comparable lot, in 1991, 24 years ago. The difference in the price of that home, that needed to be totally updated, and the home on this page offered at $1,100,000, was NOT 40%, but just 33%. So I wouldn’t say that new home prices are on fire…. but you definitely get what you pay for – minus the headache that comes from building your own home, or remodeling an existing older residence. 20150323-DSC_8097

Back to the article…. Wha20150323-DSC_8099t’s behind the bigger spread between existing older homes, and newly constructed homes? According to the article: “the housing bust and consumer preferences, says Gennadiy Goldberg, a U.S. strategist at TD Securities. After the financial crisis, “many existing homes were in foreclosure or in poor maintenance,” said Mr. Goldberg. “Buyers wanted a discount.”

“That bargain-seeking plus the flood of existing homes into the market caused the median resale price to plummet by about one third during the bust.”

“Meanwhile, the median price for a new home fell only about 25% during the bust and surpassed its boom peak way back in early 2013. That’s because home builders cut back drastically on single-family housing starts during the recession. Plus, as household finances stabilized, “consumer preferences changed,” said Mr. Goldberg. “Consumers wanted a new home.” More demand plus tight inventorieDeBordieu Colony real estate s allowed builders to lift prices.”

In conclusion, the choice is yours….. (1) purchase an older home, take care of the deferred maintenance, update the kitchen and baths, OR (2) build your own new home and sign up for marriage counseling, OR (3) purchase this gorgeous brand new home that’s ready to move into today! And I would love to help you with that! Call me at 843-455-4523, or email TroiKaz@DeBordieu.com.

To read the Wall Street Journal article: CLICK HERE

DeBordieu Colo20150323-DSC_8098ny is a very private community on the coast of South Carolina, between Charleston and Myrtle Beach, just south of Pawleys Island. In addition to 20150323-DSC_8104miles of secluded beach, boat landing access to North Inlet & the Atlantic, and a 24-hour manned security gate, the private, equity DeBordieu Club offers Pete Dye golf, a tennis center and an ocean front Beach Club with fine dining, a gazebo bar, two pools, and a playground. There is truly no place like DeBordieu. Come see for yourself!

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