Building Permit Rebound Is Good News For Buyers
The most recent numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show permits for future home construction were at a 12-year high in October. Building permits are now 14.1 percent higher than they were last year at the same time. That sounds good, of course, but why should it matter to the average home buyer? Well, it's pretty simple. When the number of homes available for sale is lower than the number of interested home buyers, prices rise. That's why home values have been increasing steadily in recent years. In short, there have been fewer homes on the market while, at the same time, buyer demand has been climbing. The most effective solution to this problem is to build more homes. That's because, as the supply of homes increases, buyers have more options to choose from and home sellers have to adjust their asking price to attract interest. So, news that permits are on the rise is good for buyers, as more new home construction may help slow the rate of price increases going into 2020. More here.