Historic Lows For New Illinois Homes

In the year 2005, the future of the construction industry in Fox Valley looked great. There were more new home starts than ever before and new subdivisions were being created all over the place to accommodate the seemingly never ending wave of buyers. But at the beginning of 2006, everything came crashing down. Buyers vanished like a rabbit in a magicians hat and builders had no choice but to deal with unfinished communities, lots of leftover of inventory and crushed expectations. Ever since then, builders have been forced to deal with the housing market problem. This has allowed some great real estate deals to pop up, but there were also casualties.

During October of 2007, real estate market watchers were shocked with the declaration of bankruptcy which was filed by Neumann Homes in Warrenville. It was one of the biggest builders in the area, and had built 15 subdivisions (including the highly popular subdivision in North Aurora: Tanner Trails). Because of declining house sales in our area and because of the even more problematic situation in Michigan and Florida (other areas where Neumann homes had projects), they had no choice but to seek bankruptcy protection.

Later in the year, in April 2008, yet another big Chicagoland builder - Kimball Hill Homes - declared that it too would file for Chapter 11 bankruptcy protection in order to help alleviate its debt. The company still continues its normal daily operations for now, but it is not known what impact this will have on new future projects like Settler’s Ridge in Sugar Grove.

Individuals selling their homes must ensures that they price their homes aggressively right from the beginning. If a deposit is required for a new home before your home has been sold, you must to be as aggressive as possible in selling your home at the start. You should contact the real estate agent for your local area to obtain information on how to appraise your home accurately in the current market. If you are too passive when it comes to pricing your home, you risk having your new home built before your old home is sold. Certain builders may offer you a home-sale contingency allowing you to cancel the deal and receive your deposit back if your house does not sell. However, a lot builders do not allow this because of the poor market conditions.

People entering the market today looking to buy houses are finding builders that are spread extremely thin on profit margins. Fortunately, times like these offer great opportunity in new construction affordability. Throughout the past year, builders have been desperately trying to spur buyers into action by offering all kinds of incentives. The conditions are more favorable than they have been in over 50 years for home buyers to purchase a new home. Experts are saying that the housing market, particularly in the new construction area, has bottomed out. Even though the recovery may not be swift, things are not expected to worsen much. Thus, people looking to buy have a once in a lifetime chance to get in on these historically low prices.