Local Real Estate Picture Rosier Than At The National Level

(KNSI) – Homebuilders are seeing more prospective buyers walk away from contracts to purchase real estate at the national level. Werschay Homes CEO David Werschay says it works differently locally because the market isn’t big enough to use that kind of business model.

“The National builders have the horsepower to be able to build on spec. They can put up 30, 40 homes in their community that don’t have a homeowner attached to them yet. The smaller builders don’t have the financial horsepower to be able to put up a whole bunch of inventory.”

Werschay Homes focuses mostly luxury builds. Even area builders that cater primarily to the average house, $300,000 to $400,000 dollars, are doing okay. Werschay says he doesn’t know of any cases where buyers have been forced out due to rising prices and higher mortgage rates.

In this example, national and local are so distinct that one isn’t indicative of the other.

“So, I think when you see articles about national data they’re hearing it and they’re seeing it and they’re getting their numbers from the National builders. [It] doesn’t always pertain to smaller, niche markets such as Central Minnesota.”

Nearly all of Werschay’s projects are custom builds and financing is arranged beforehand.

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