If you’re a prospective home buyer, the pace of new home construction should matter to you. Today’s hot market and rapidly rising prices are largely due to the fact that there are fewer homes for sale these days. Combined with a high level of buyer demand, the lack of inventory has caused a competitive market where homes sell quickly and well over the seller’s asking price. So what’s the answer to this problem? Well, adding to the supply of available homes would help alleviate some of the pressure home buyers are currently feeling. And that’s why the latest New Residential Construction report from the U.S. Census Bureau and the Department of Housing and Urban Development is encouraging news. The report found that the number of new homes that began construction in August was 3.9 percent higher than the month before and 17.4 percent higher than last year at the same time. Additionally, the number of permits to build new homes was also up, rising 6 percent from July. The gains mean more homes for sale and, potentially, less stress for home shoppers. (source)
