Re: 2,500 Sqft under $300k in Miramar Beach
Josh, your cost to reproduce assumes that building costs stay put or rise in the future. With the quickly slackening pace of new construction, the price of commodities like lumber, concrete, etc is likely to fall meaning construction costs will be falling (in fact, builders I know say it is already occurring). In addition, builders will be competing more with each other as people build fewer homes. Building a new home will become cheaper, not more expensive, over the next year or two.
Shelly,
I'm not saying that price decreases won't continue into next year. I think several areas are still overpriced, but I believe sales will rise overall. There are a lot of GREAT deals out there at this time. If you would have told people 3 years ago that they'd soon be buying properties under $150/ft they would have called you crazy! I know several properties that you couldn't reproduce for the sales price. I think you have to be near the bottom when that's happening. I don't see another boom by any means, but I think we will see increases in sales for the next several years to come and increasing prices soon enough. All of this is my personal opinion from studying the market Shelly.
Josh, your cost to reproduce assumes that building costs stay put or rise in the future. With the quickly slackening pace of new construction, the price of commodities like lumber, concrete, etc is likely to fall meaning construction costs will be falling (in fact, builders I know say it is already occurring). In addition, builders will be competing more with each other as people build fewer homes. Building a new home will become cheaper, not more expensive, over the next year or two.