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There have been several articles in the local press over the last week or two announcing that construction will begin at Clevenger's Corner next spring. Since April's numbers show approximately 23 months worth of inventory sitting here unsold in Culpeper County it's interesting timing! Overall, houses are not exactly selling like hotcakes in Jeffersonton, Virginia.
Now I will admit that what is selling is almost entirely new construction. And it's selling because the builders are providing incredible deals. K Hovnanian, for example, has been advertising that if you buy a house from them now there are no payments until 2008. We're seeing $10,000 credits towards closing costs. $10,000 towards upgrades and sometimes more.
What the public doesn't see are the incentives to real estate agents. My inbox receives multiple e-mails daily offering me $5,000 or $10,000 bonuses, chances to win cars and trips, etc. All these are offered as incentives to bring my buyers to the builder.
Given all this as background, it seems like a poor time to begin this project. I'm not saying they won't do it. But I will say that spring of 2008 is quite a ways off yet. They can do some site work and watch the market. Don't be surprised to see them building very slowly or pushing back the date.
Of course, perhaps by next spring everything will have turned around and we'll be looking at a much more robust market. But....don't put any money on that scenario just yet! Let the big builders place those kind of bets!
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