Are New Homes Going to Be Available to Buy This Year?
The conversations by many today seem to centers on looking for encouraging signs of an economic recovery. Most pundits are in agreement that recovery may already be happening or will begin by the Fall. With the housing market positioned to pilot the pat out of this recession, builder confidence may be a shining spark that ignites the recovery. New home construction is a significant factor of that effort, and it may drive your opportunity to make a move this year.
As reported by the National Association of Home Builders (NAHB):
“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.”
In addition, builder confidence is also rising, opening up opportunity for newly constructed homes in the market. The NAHB also notes:
“In a sign that housing stands poised to lead a post-pandemic economic recovery, builder confidence in the market for newly-built single-family homes jumped 21 points to 58 in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Any reading above 50 indicates a positive market.”
As indicated above, this trending upward is supported by builders reporting a rise in demand for single-family houses in rural neighborhoods with less population, a result of the COVID-19 pandemic.
In addition, a recent Monthly New Residential Construction Report from the U.S. Census reports that government approved building permits for new residential construction rose by 14.4% month-over-month from April to May, and housing starts also increased by 4.3% over the same time period. (See graph below):
Despite the fact that housing permits and starts are both significantly lower than they were during this same period in 2019, indicating the new construction market is still working on building its way back up, the trends are moving in the right direction when it comes to having an impact on the U.S. economy. They’re also poised to create the much-needed new homes for Americans to purchase in a time when inventory is so scarce.
Dean Mon, Chairman of the 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. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”
The difference between homes to buy and the high demand from purchasers may be narrowed by new construction, and data shows that these homes are on their way into the housing market.
So, if you’ve debated whether or not to sell your house this year because you’re not sure where to move, a newly-built home – designed to your specific liking – may be your answer.
With new residential construction right around the corner, you can feel confident about selling your house and having a place to move into. Maybe it’s time to finally design the home you’ve always wanted. Let’s connect today to discuss selling your house while demand from eager buyers is high.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.