Lisa Mailhot | July 12, 2023
If you're currently searching for a home, you're likely experiencing a limited supply of available properties. The low inventory may be causing frustration as you struggle to find a home that suits your preferences. However, it's important to remember that opting for a newly built home presents a fantastic alternative. According to a recent publication by the National Association of Realtors (NAR):
“Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.”
To illustrate the growth of new home construction across the nation, let's examine a significant indicator called new residential completions. This metric represents newly built homes that have been finished and are ready for occupancy.
The graph below, utilizing data from the Census Bureau, displays the trend of new-home completions over time, including the long-term average for the number of completed housing units:
Looking at the left side of the graph (shown in orange), we observe that leading up to the housing crash, builders exceeded the average completion rate. This resulted in an oversupply of homes, ultimately leading to a decline in home values and the housing market crash of 2008.
Since then, new home construction has declined, and builders have failed to meet the historical average (shown in red). Consequently, the housing market has been grappling with a multi-year inventory deficit, contributing to the current shortage of homes.
However, here's the encouraging news: the green section on the right indicates that builders are now matching the long-term average, as reported by the latest Census data. This implies that they are introducing more newly constructed homes to the market than in recent years.
Additionally, residential starts and permits are gaining momentum. Starts refer to homes where construction has officially commenced, while permits are for homes where builders are planning to begin construction soon. The increase in both categories indicates a forthcoming influx of newly built homes.
The expanding number of newly constructed homes at various stages of completion means that your pool of options has just grown larger. If you're looking to move promptly and timing is crucial, reach out to a local real estate professional who can guide you toward recently completed homes in your area. If construction is complete, you should be able to move in quickly.
Alternatively, if you have the flexibility to wait and the idea of customizing a home appeals to you, consult the same agent about homes under construction in your area. By purchasing a home in progress, you can have a say in selecting features and finishes along the way. This personalized touch may be the best option when none of the existing homes meet your preferences.
Regardless of your approach, enlisting the services of a trusted real estate agent is vital. They possess knowledge of what's available in your area and can make recommendations based on your specific needs, desired neighborhoods, and more.
If you're struggling to find a home you like due to the limited inventory, it may be worthwhile to explore the option of new home construction. To initiate this conversation and ensure you work with an expert who knows what's available in your area, let's connect.
Stay up to date on the latest real estate trends.
Lisa Mailhot | November 30, 2023
Experience Unique Living: Converted Churches, Barns, and Factories Turned Homes. Discover the charm of unconventional conversions with history, character, and modern c…
Lisa Mailhot | November 28, 2023
Delve into the secrets of Orange County, California, with our blog featuring captivating trivia facts. Whether you're a potential buyer, seller, or a curious tourist, …
Lisa Mailhot | November 27, 2023
Uncover 2023 Orange County Housing Market Trends: Delve into median sold prices, sales metrics, and market dynamics to understand if it's a buyer's or seller's market.…
Lisa Mailhot | November 22, 2023
Stuck in a last-minute gift scramble? Discover seven low-stress, last-minute gift ideas that'll delight your loved ones and elevate their home experience. From cozy th…
Lisa Mailhot | November 21, 2023
Explore the changing real estate landscape influenced by declining mortgage rejection rates. Discover the opportune moment for buying or selling your home while improv…
Lisa Mailhot | November 20, 2023
Selling your home with challenging neighbors? Learn how to handle noisy, disrespectful, or problematic neighbors effectively. Follow these tips to ease the selling pr…
Lisa Mailhot | November 16, 2023
Get the latest insights into the Orange County real estate market. Discover trends, notable closings, and the impact of the holiday season on inventory. Stay informed …
Lisa Mailhot | November 15, 2023
Stay informed on FHFA's 2024 multifamily loan purchase caps, totaling $140 billion for Fannie Mae and Freddie Mac. Explore the impact on the multifamily market and its…
Lisa Mailhot | November 14, 2023
Learn about the rise of alternative lenders, such as parents, as a solution to the affordability challenge in today's real estate market. Explore available options for…
You’ve got questions and we can’t wait to answer them.