I’ve had a chance to go through the 2009 Parade of Homes booklet, and one thing really struck me. Where are all the starter homes? Being an accountant is a previous career, I went through all the homes on the N&O site. Here’s what I found

• Less than $100,000 ——– 0
• $100,000 to $150,000 — 4
• $150,000 to $200,000 — 10
• $200,000 to $300,000 — 38
• $300,000 to $400,000 — 30
• $400,000 to $500,000 — 29
• $500,000 to $600,000 — 8
• $600,000 to $700,000 — 11
• $700,000 to $800,000 — 9
• $800,000 to $900,000 — 3
• $900,000 to $1,000,000 – 9
• more than $1,000,000 —- 7

I certainly understand that these are supposed to be “show homes” that have all the bells and whistles. 47 of these homes, however, would require a jumbo loan to purchase [even with 20% down] and those loans have been almost impossible to get at a decent interest rate. In another words, they are houses that [almost] won’t sell.

The segment that has been driving the housing market, however, has been the starter home market with first-time buyers using the $8,000 tax credit. Homes in Hassentree and Colvard Farms are really beautiful, but I always thought at least one builder would have tried to promote to the market that is actually moving. Or am I missing something?

Tags: Parade of Homes, starter homes

This entry was posted on Monday, October 5th, 2009 at 11:06 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.