It is true that the housing market has undergone a severe price correction over the past 5 years. What we are seeing in this second home market is the absence of quality homes on the market because the owners do not want to sell at these low market prices.
What is on the market are foreclosures or other types of distressed properties that are difficult to sell to begin with. The few quality homes listed for sale, while discounted from several years ago, still demand a good price relative to the competition.
New home construction has also dropped in cost. Interestingly, building materials costs have not dropped thanks to demand for these same materials in other parts of the world. New construction savings comes from reduced labor cost to build a house and reduced profit margin various trades charge for their part of the construction. No one in construction today is getting rich.
Because of the decline in cost, new construction is competitive if not more affordable to buying an existing home when comparing quality and workmanship. What new construction offers you, the home buyer, is the ability for you to design a home for your tastes and place it in a location you love. This adds up to total satisfaction for years to come.
So, why settle for a house that meets only part of your needs when for the same cost or less you can build a home that meets all of your needs?