Posts 
The high number of bank foreclosure for sale and distressed properties had made home builders in Fort Wayne, Indiana, reluctant to start any construction project once these structures were left standing for a long period of time without anyone showing an interest. However, analysts reported that confidence is growing among builders as the date for the Parade of Homes gets nearer.
The presence of foreclosures in Fort Wayne has made a lot of home builders wary of building new homes as potential buyers get fewer. The annual showcase of build-to-spec homes caught a snag last year, when among the reported 80 builders approached to participate; none showed a willingness to build unless there are buyers already lined up. However, the event will return this year and will be held in September in a subdivision at the northeastern part of the city.
This, analysts stated, showed that builders are gaining confidence and that the market is starting to improve despite the continuous flood of foreclosed homes in Indiana. Although local analysts are confident that the housing industry is starting to rebound, they do admit that the same cannot be said for the national housing market. February data showed that nationwide home building activities declined by 22.5% during the month compared with January 2011.
New houses built in February totaled 479,000 in the whole U.S., recording the second lowest total in more than 50 years. With this in mind, analysts reported that builders in Fort Wayne are being more cautious, with most of them building houses that are moderately priced and have better chances of competing with low-priced bank foreclosure for sale properties.
Majority of homes that will be built at the venue of the Parade will be priced between $250,000 and $300,000, local reports have revealed. Although this price range is still higher than the prices of homes commonly found in list of REO properties, they are much cheaper than the average price of $300,000-$500,000 planned last year. Industry analysts stated that last year's price range would have been unrealistic now, particularly with the market currently dominated by investors seeking bargain homes.
Meanwhile, although bank foreclosure for sale and distressed houses are still expected to account for a large percentage of home sales this year, most home builders believe that sales of new homes will rise in 2011. They stated that the improving economy and the stabilizing job market will help convince more buyers to go for new houses instead of purchasing distressed dwellings.