New construction is one facet of the Illinois real estate industry that’s been hit particularly hard by the market downturn. Builders have had to respond to low interest by slashing prices. The big question is: how low can it go?
Back in 2005, the new construction scene in the Fox Valley was looking bright. New home starts were riding an all-time high and new subdivisions were popping up everywhere to provide for the seemingly endless stream of buyers. In early 2006 it all came crashing down. Buyers disappeared like fog in the morning and builders were left to deal with half-finished communities, a glut of inventory and a ton of unfulfilled expectations. Since then, builders have had to respond and deal with the housing crisis. This has created some great deals for home buyers but there have also been some casualties.