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Tag: New Homes For Sale

Why New Homes Matter Even If You Don’t Buy One

If you follow real estate, you’ve heard a lot about inventory lately. That’s because, inventory – which refers to the number of homes available for sale – plays a big role in how much house the typical buyer can afford. When there are more homes for sale than there are interested buyers, home prices fall. These days, there are a lower-than-usual number of homes available to buy in many markets, which is why prices have continued to rise across the country. Of course, one good way to boost inventory is to build new homes. New home construction produces more choices for buyers and more competition among sellers, which helps balance the market. For this reason, the National Association of Home Builders regularly surveys builders to get a feel for whether they are optimistic about the market and likely to build more homes. The NAHB’s Housing Market Index scores builders answers on a scale where any number above 50 indicates more builders feel conditions are good than poor. In February, the index fell two points but remains in positive territory at 65. Granger MacDonald, NAHB’s chairman, says builders are generally optimistic. “While builders remain optimistic, we are seeing the numbers settling back into a normal range,” MacDonald said. Regionally, the Northeast and South were down, while the Midwest rose one point and the West was unchanged at 79. More here.

Construction

New Home Market Off To Optimistic Start

New data from the Commerce Department and the National Association of Home Builders shows builders are optimistic about the market for new homes this year. That’s an encouraging sign, as a lower than normal number of homes available for sale has caused affordability conditions to decline in recent months. If more new homes are built, buyers will have more options to choose from and home prices should begin to moderate. In December, the number of new homes that broke ground was up 11.3 percent from the month before, according to the Commerce Department. The number of permits to build single-family homes also rose, jumping 4.7 percent. Additionally, the NAHB’s Housing Market Index – which measures builder confidence on a scale where any number above 50 indicates more builders feel conditions are good than poor – scored a 67 this month. NAHB chief economist, Robert Dietz, says the group expects continued improvement this year. “NAHB expects solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016,” Dietz said. “Concerns going into the year include rising mortgage interest rates as well as a lack of lots and access to labor.” Regional results show three-month moving averages up slightly in the Northeast and Midwest, while the West and South held steady at 79 and 67, respectively. More  here.

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