Are New Homes Going to Be Available to Buy This Year?
With the economy showing signs of recovery, many experts believe the housing market may lead the way out of the recession. Builder confidence is rising, and new home construction could provide opportunities for buyers this year.
The National Association of Home Builders (NAHB) reported:
“New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April.”
Builder confidence is also increasing, which indicates more newly constructed homes are coming to the market. According to NAHB:
“Builder confidence in the market for newly-built single-family homes jumped 21 points to 58 in June. Any reading above 50 indicates a positive market.”
This trend is fueled by demand for homes in suburban, lower-density neighborhoods. The U.S. Census Monthly New Residential Construction Report also shows:
- Authorized building permits increased 14.4% from April to May
- Housing starts rose 4.3% over the same period
Although permits and starts are below last year’s levels, the market is recovering. Dean Mon, Chairman of NAHB, notes:
“As the nation reopens, housing is well-positioned to lead the economy forward. Inventory is tight, mortgage applications are increasing, interest rates are low, and confidence is rising. Buyer traffic more than doubled in one month even as builders report growing online and phone inquiries.”
New construction can help meet high buyer demand and provide homes for those looking to move. If you’ve been debating selling your house, a newly-built home – designed to your specific liking – may be the perfect option.
Bottom Line
With new residential construction ramping up, you can confidently sell your home knowing there are options waiting for you. It may be time to finally design the home you’ve always wanted. Let’s connect to discuss selling while buyer demand is high.
