Memphis Home Building Companies Adapt to Market Condition
Most home building companies in Memphis, Tennessee have learned to adapt to the impact of the foreclosure crisis on the housing market. A big number of home builders are varying their designs and are opting for more functional home features instead of focusing on aesthetics.
According to local reports, most builders are choosing usable space over tall roofs, while others install laminate countertops and not the more expensive granite. Vinyl floors have also become much preferred over hardwood that could increase the price of a home considerably. Still others are building smaller houses to make sure that the price stays within the $271,000 mortgage limit imposed by the Federal Housing Authority.
For those who continue to build larger homes, they try to lower the price by offering sparse amenities to buyers and keep the selling price at $150,000 or less. Such techniques have been adopted by majority of home builders in the city and this, according to home building industry observers, have resulted in most firms having the ability to cope with the housing market downturn and the recession. Some have even recorded profits despite the economic downturn.
These efforts exerted by local home building companies are being rewarded by recent increases in new housing sales. According to the latest housing market figures, a total of 100 new houses were sold in March 2010 compared with the 31 dwellings sold in March 2009.
April 2010 saw the city selling 96 newly built dwellings compared with 61 in April a year ago. June 2010 totals were at 134, with June 2009 total at 44, while July 2010 saw 126 residences being sold compared with the 77 total posted in July 2009. So far, building permits for 2010 total 437, a figure that is considerably higher than the whole 12-month total of 385 recorded in 2009.
According to some home builders, this improved condition in the house building industry shows that most buyers are realizing that the prices of dwellings will not get any better and it would be better to make a purchase now instead of later. They also stated that the coping strategies used by most home building companies in Memphis have worked to keep most of the firms in business despite the recession.