Buyers looking for a brand new home have been shocked to find that foreclosed homes and unemployment have hurt residential new home construction. This is true even of Palm Springs real estate. Most of the homes that sell in the United States are those of you been for close on, abandoned by their owners, or were built sometime ago. In fact the US residential construction market hit its lowest level of activity in February of 2011. Despite reports that the economy is in recovery this data clearly shows that the property market is still depressed.
Many contractors who build homes have been unable to proceed with the the few new construction projects that come their way because of costs. With new homes no longer selling at their true market value or at all contractors are reluctant to take on projects that will put them into or cause further debt. This in turn makes one group of home buyers reluctant to buy a home as many often want a house that's brand-new.
As mentioned previously many homeowners, first-time buyers and even investors, seek out bank owned homes and purchase those with little to no thought of purchasing a new home. As such it makes contractors and banks reluctant to build new homes when buyers are clearly interested the lower costs and benefits of the foreclosed home. It's not difficult to ascertain why so many buyers are interested in foreclosed homes as they are normally available at just a fraction of their true market value and provide investors with a way to save and make a lot more money.