Feb 28, 2009 6:49 pm US/Central
Fewer Homes In 'Parade Of Homes' This Year
(WCCO)
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Last year there were 383 builders and 1,100 homes on display. This time around only 180 builders are participating and only 403 models are in the Parade.
CBS
Minnesota builders use the Parade of Homes to promote new homes. But this year, fewer people are putting out those yellow parade signs.
Last year there were 383 builders and 1,100 homes on display. This time around only 180 builders are participating and only 403 models are in the Parade. It's another sign of the sagging economy.
"For me, I'm trying to stay under $130,000," said Jennifer Ayshford.
She's looking on the lower end of the spectrum, but the pickings are slim. There are just seven homes on the parade priced below $150,000.
"They're more affordable for me as a single parent looking to purchase another home," said Ayshford.
The time is right if you're in the market to buy new construction because builders are holding off on building any more homes.
"There are fewer homes on the market everywhere in the Twin Cities," said Paul Bruggeman, President of Bruggeman Homes. "So this slider, this good time that we're in for homebuyers is going to come to an end, because homebuilders aren't building any more new inventory."
That could mean a good deal for homebuyers because the price tag is lower.
"Right now the pricing of homes, we're selling them for less than we can reproduce them for," said Bruggeman. "So for us to even build this home today would cost us more than what we're selling these homes. We're being very aggressive on moving our existing inventory."
Bruggman's family has been building homes for 50 years. He's hoping the Parade of Homes will help build up sales.
"We are being aggressive as we can on our pricing structure to attract all buyers and we're entered into the Parade of Homes, which is one of the best marketing tools," he said.
The Parade runs thru March 22.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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