Warren County Ohio Real Estate News and Observations: Does The Builder Have The Edge, Or Do You?

Does The Builder Have The Edge, Or Do You?


Real estate markets come in three main varieties: 

1.  A buyer's market (too many houses for sale relative to the number of buyers). Sellers have to be price competitive and prepared to be on the market for an extended time.

2.  A seller's market (not nearly enough houses for buyer demand).  Short time on market and multiple offers become the norm.

3.  A balanced market (a good match of homes for sale to buyer demand).  Neither side really has the edge, so prices may be negotiable and time to sell is still reasonable.

Now obviously builders aren't big fans of Market Type 1.  They tend to slow down production, postpone starting new communities, etc.

Builders are okay with Market Type 3.  While their contracts may not be ideally fast, they're still happening steadily.  Some incentives here and there can spur a particular community.  Buyers love that brand new home, right?

And builders REALLY love Market Type 2.  The deck is stacked in their favor and they know it.  They can set the terms because they KNOW that if Buyer A doesn't commit on the terms the builder wants, Buyer B will be along shortly to say "Sure thing!  Sign me up!".

And while you may not expect it, all three Market Types can exist in the same area at the same time, it's just a matter of conditions.

Builder A has a high demand type of housing in a high demand area, they can set the terms (e.g. Mason Ohio new construction of just about any type in any location).  They're rolling in Market Type 2.

Builder B is just a few miles down the road, but different conditions.  A GOOD school district, but not great.  The net result, the builder has to be a bit more flexible to attract the buyers.  Sales will still happen, but they're in Market Type 3. 

And Builder C?  Maybe it's the economy at the time, or perhaps the builder miscalculated market conditions.  Homes priced too high, placed too far away for a reasonable commute, or something other factor that was missed.  End result, the buyers aren't beating down the doors to build a new home. 


Interested in knowing more?  The answers are easy to get, just call Bill at 513-520-5305 for a chat.  Like what you hear, we can meet in person and get even more detailed about determining the best path to take care of your future home needs!


We look forward to hearing from you!

Serving Greater Cincinnati home buyers and sellers,

Bill of Liz and Bill aka BLiz 


Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of RE/MAX Elite
Elizabeth Spear, ABR, CRS, Ohio License SAL.2002007747

William (Bill) Spear, CRS, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

Search Homes:  Http://WarrenCountyOhioRealEstate.com

Our Website:  www.LizTour.com

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Comment balloon 1 commentLiz and Bill Spear • October 25 2018 12:18AM


Nice overview of the different  markets and what each means. It's clear why builders love scenario #2!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) about 2 months ago