Edwards, CO (PRWEB) August 10, 2006
The National Association of Home Builders said, “U.S. home-builder optimism plummeted to its lowest confidence level in more than 14 years this month, as buyers canceled sales contracts and investors continued their exit from housing.” The robust sales in Colorado of just one year ago are slowing now as they are in all areas of the country, mostly due to a rise in interest rates and over-inflated home prices.
Sentiment among custom home buyers in the Vail, Colorado area is mixed. Strong sales are continuing in the custom built home market in places like Vail Valley, where high-end homes are built and sold every day. Vail custom home builder,[ http://www.VailCustomHomeBuilder.com ]J.P. Sunderland, has custom projects stacked "back to back," while other Vail area builders who specialize in smaller low-end houses and condos are getting hold orders and cancellations. Sunderland has been a Vail custom home builder since 1980.
"In Vail, and in other parts of the country, there is an ongoing concern about where the housing market is going," said NAHB Chief Economist David Seiders. The luxury home market in Vail however is still quite strong in the wake of the current interest rates, high oil prices, and other financial strains on investors. Custom homes starts account for about 12% of the total homes sold in Vail Valley last year.
The Dow Jones U.S. Home Construction index fell to a two-year low of 547.84 following the recent NAHB report. They suspect the negative buyer and builder sentiment is largely based on concern over interest rate policy of the Federal Reserve, which last month raised its target rate a 17th consecutive time since 2004.
The vast majority of buyers out there are weary of yet another rise in the interest rates and its effect on home loans. A one point rise can mean thousands in increased mortgage payments so it seems average home buyers are waiting for rates to level off, or drop again before signing on the bottom line.
For more information about building a custom home in Vail Colorado, contact SunderInc - Vail Builder Since 1980. http://www.SunderInc.com