Is The Home Shortage Creating New Residential Construction?

by | Sep 10, 2020 | New Construction

It’s a sellers’ market – which means there are fewer homes for sale right now than the demand for them. That does not mean home buyers need to panic.

When one door closes, another opens. The availability of vacant land and new construction starts have not waivered, and they are ready for the taking!

Instead of stressing out over low inventory and bidding wars, it may be a good time to look into building the custom home of your dreams.

The facts

Brand new single-family home sales jumped 14% between June and July. How crazy is that?

Some builders had to halt construction at the start of the novel coronavirus. These numbers are not only encouraging to potential homeowners but for those out of work builders as well.

Builder and homebuyer confidence is back up to pre-pandemic levels.

In fact, Realtor® Magazine says that builder confidence now matches the highest on record from 1998.

Moving forward

Due to this increase in demand, many builders have raised their pricing. It is also important to note the increase in lumbar pricing as well.

In July, the average price for a new construction home was $330,600. This is a 7.2% increase from last year. However, that does not mean there are not ways to cut down on that cost.

You can save thousands of dollars by making smart design choices in your kitchen alone! Read more here.

Additionally, new construction homes may offer more attractive financing options. We wrote all about that as well: Financing Your New Construction Home.

Although this is all great news, there is always a catch. Now that builders are increasing their inventories, many companies are finding themselves short on laborers to complete the project in a timely manner.

Keep this in mind when scouting out your contractor and add it to your list of questions to ask.

Another option

If you still find yourself hesitant about taking on a big project, you may also consider adding to your existing space. Or even remodeling your current layout to make your functional living space larger!

We have tons of blogs and resources that can help you determine the best route.

Read more about if you should remodel or rebuild your home.

And, when you have decided, contact us for a free quote!