NEW SITE BUILT HOME SALES FALL SHARPLY: MANUFACTURED HOME AFFORDABILITY GAP WIDENS
Sales of new site built homes plunged sharply in September to the slowest pace in 10 months, as higher prices and slower overall economic growth weigh on the new housing market, according to the AP. The September sales decline and continuing economic pressures will likely trigger a pullback in new home construction starts resulting in future price increases and dwindling availability. “A stronger pace of sales will need to be seen for the stronger pace of single-family housing starts to be sustained,” said Ted Wieseman, an economist at Morgan Stanley.
The Commerce Department reports that new home sales slumped 11.5 percent in September to the lowest seasonally adjusted rate since November, 2014. Purchases of new homes slid in the Midwest, South and West, and plummeted 61.8 percent in the Northeast. Prices have climbed sharply as well. The median new home price has jumped 13.5 percent from a year ago to $296,900.
“NEW SITE BUILT HOME SALES FALL SHARPLY: MANUFACTURED HOME AFFORDABILITY GAP WIDENS”
Conversely, many homebuyers are realizing that a new manufactured home will meet the needs and desires of quality home ownership with pricing continuing to remain between 35 to 60 percent less than the construction cost of a comparable individual site built home. The affordability gap continues to widen as site built home prices continue to increase while manufactured home prices remain consistently stable.
Does this mean that you can purchase a new manufactured home that is built equally well as a comparable site built for one half the price? The answer is…Yes, you can. But not necessarily in every instance. There are several factors that will dictate your savings, such as where the home will be located, the overall size of the home and the amenities selected for the home. Even with these factors present the savings are substantial when cost comparisons are made between a new manufactured home and a site built home.
Today’s Prefabricated Homes
Manufactured homes have changed significantly over the past dozen or so years and now appeal to a wide range of buyers. There is a much broader variety of manufactured home products with many more styles, designs and trends that are comparable to anything site built does.
Today’s manufactured home is appealing and affordable for every market segment of home buyers — from the low priced homes to the ultra deluxe models — and endless choices to fit any lifestyle in between.
Availability of new manufactured homes is never a concern as manufactured homes are built efficiently and timely in a factory controlled environment not subject to weather and/or other adverse conditions often associated with site built homes.
The quality, performance, safety and durability of today’s modern new manufactured homes is an affordable alternative to those seeking high value for their financial investment.
