Interested in a smaller home and price tag?

Are you interested in a home finished by a new building strategy?

Some builders are taking advantage of lower lot prices to resume work in stalled housing developments, AJC reporter Michelle Shaw writes.

But they’re not necessarily the same builders that started the work, and the homes they’re building may not be in the same size or price range, Shaw reports.

At the Estates at Old Atlanta, for instance, Pulte Homes inherited building rights in a buyout and this year started putting up homes of no more than 3,200 square feet, priced at $270,000 to $330,000. The eight original homes had an average of 3,500 square feet and sold for $335,000 to $460,000.

The change in strategy creates another twist in the fallout from the housing bust, Shaw writes. People who bought the first homes in subdivisions started at the height of the housing boom may see less expensive homes going up all around them.

If you’re an existing homeowner, does that worry you? Or is living in a half-completed subdivision a lot worse?

On the flip side, if you’re thinking about buying, does this new approach catch your interest?

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6 comments Add your comment

Morgan

June 15th, 2010
7:38 am

I am one of the people in the second category. I bought my first home in an unfinished subdivison and got a great deal. I understand this may hurt the resale for the current homeowners. At the same time, if I didn’t buy someone else would have. I am hoping that it will all equal out when the market recovers. Fingers crossed

The Economy

June 15th, 2010
10:50 am

Would residents prefere that the subdavisions not be finished??? It sucks, but what are you gonna do?

Judy

June 15th, 2010
10:53 am

I built a custom home in a subdivision that I was told would be all custom homes 15 years ago. But the developer ended up selling out to a mass market builder, who finished the subdivision with less expensive homes. End result–my house lost nearly a third of its value (according to realtors I interviewed) and this was before the housing bubble and crash.

KK

June 15th, 2010
11:36 am

Something interesting in my area is, I bought around Doraville where the builder is going in and has torn down old run down homes in a “mature” neighborhood. They are building brand new homes that sit next to old run down homes but the new ones sell as soon as they put one up. You just have to overlook the mess that still lives there for now.

TnGelding

June 15th, 2010
3:28 pm

Judy

June 15th, 2010
10:53 am

Don’t pay any attention to the “Realtors.” The home is worth what you can sell it for, period. The size and quality still matter. Also the location. And your home will regain any value it has lost over time.

The homes being built are still too big and too expensive. Why pay higher utility bills and taxes on more house than you need?

AnotherView

June 16th, 2010
11:19 am

Not so long ago, the recommended cost for a house was two years’ salary. We should not buy until it is that way again.

In 2008, the average median household income in Atlanta was about $51,000, and the average salary was about $39,000. Houses in the Atlanta area should average then between $78,000 and $102,000. And average rent should be no more than 1/5 the average salary. Until this is understood, the economy will never heal. T

here was a time when it was said that cars should cost no more than 1/4 average yearly income. There was a time when houses could not be purchased with loans, but only with cash and savings on hand.

People are spending far beyond their means and buying into a horrible future. And sellers and landlords must find in their hearts compassion and put aside their greed. Housing should be treated as one of the three necessities (food, clothing, housing), and not as investment vehicles, or should we say, for gambling. Neither should housing be a target of taxation. It is necessary for living.

The general denial of the truth in this is frightening. As long as this is denied, economic recovery will be fleeting and temporary at best, or perhaps may never come.