There are valid reasons to consider new construction homes in any housing market. In a housing market that is constantly changing, new construction homes have a lot of benefits. You will enjoy these benefits not only the day you move in but they will last you for a very long time. As a matter of fact, if you are looking to start buying or building your new home, it may be a good idea.
Despite predictions of a recession, housing construction appears to be on the upswing. According to Fannie Mae, the forecast for housing rose a large amount. Households left urban areas and moved to bigger homes in the suburbs and exurbs. This is due to their need for more space. Because of this, the housing market prospered. And even though economic activity crashed in the early stages of the pandemic, housing starts nationwide rose by about 7% in 2020. The housing increased by another 15%. This is their highest level of production since 2006. In the years following the Great Recession, the multifamily sector was much stronger.
In addition, the persistent shortage of existing inventory is feeding the demand for new homes. March saw a 9.6% increase in new home sales, which have been trending upward since the fall of 2022. The new housing market seems more optimistic than it did at the beginning of the year. The National Association of Home Builders’ sentiment index increased in May. This has been its 5th consecutive month to reach a level of 50. It indicates “neutral” market conditions. Also, a more optimistic outlook for the rest of the year was mentioned by many of the homebuilders.
There is a continuous anticipation of tighter bank lending standards. This will restrict construction in the future, particularly among smaller and custom builders. Nevertheless, there is an increase in prediction for new single-family starts for the year.
“Housing remains exhibit number one for why we expect the recession to be modest. It continues to outperform our expectations, and we expect that its relative strength will help kickstart the economy into expanding again in 2024,” Doug Duncan, Senior Vice President and Chief Economist of Fannie Mae
The Bottom Line
Finding the ideal home for you can seem like a bit of a challenge. There aren’t as many options available as there are now. As we all know, there is a current low level of housing inventory. A newly constructed home might be something to consider if you need to expand your choices. Not to mention the freedom for customization and low maintenance that comes with it. To get more information about what’s available in your neighborhood, work with your local expert.
What To Do:
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