Exploring the Housing Market?
In your current home search, you’re likely aware of the scarcity in the housing market, as the limited selection of available homes impacts your choices. If you’re encountering difficulty in finding a suitable option, it’s crucial to remember the considerable advantages of considering a newly constructed home.
Let’s examine a significant measure that demonstrates the substantial growth of new home construction across the country. This metric is referred to as “new residential completions.” In essence, completions represent recently constructed homes that have reached completion and are fully prepared for occupancy.
On the left side of the graph (in orange), it is evident that leading up to the housing crash, builders surpassed the average rate of construction. This led to an excessive inventory of homes available for sale, ultimately causing a decline in home values. This oversupply of homes was among the contributing factors that triggered the housing crash in 2008. Subsequently, there has been a decline in the level of new home construction, and builders have failed to construct an adequate number of homes to meet the historical average (in red). Underbuilding has resulted in an inventory deficit in the housing market that has persisted for multiple years. This deficit is one of the contributing factors to the current low inventory levels we are experiencing.
However, there’s some positive news: the green portion on the right side of the graph indicates that, based on the most recent report from the Census, builders are currently matching the long-term average. This suggests that they’re introducing a greater number of newly constructed homes to the market than they have in recent times.
Both residential starts and permits are gaining momentum. Starts refer to homes where construction has officially commenced, while permits indicate homes where builders have plans to begin construction in the near future. The increase in both starts and permits signifies that even more newly built homes will be available in the near future.
What Does This Mean For You?
With an increasing number of newly built homes, your range of options has expanded. If you’re looking to move promptly and time is a crucial factor, it’s advisable to contact a local real estate professional who can assist you in exploring recently completed homes in your area. If construction is finished on these homes, you can expect a quick move-in process. Alternatively, if you’re willing to wait and the idea of customizing a home from scratch appeals to you, consult the same agent about homes currently being built in your vicinity.
If you’re struggling to find a suitable home amidst the current low inventory, it might be worth considering exploring new-home construction. To ensure you have access to comprehensive information about available options in our area, let’s connect. Reach out today, and let’s get started on finding your dream home!
