New Home Building Boom Is Good For Buyers
With the number of available homes for sale lower than normal in many markets, there's been an understandable focus on how many new homes are being built. After all, the quickest way to fix a supply issue is to add more supply. That's why new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are encouraging. Because, though they show a month-over-month decline in the number of new homes that began construction in January, year-over-year estimates are up 21.4 percent. Additionally, the number of building permits surged to a nearly 13-year high. And, since building permits are a good indicator of future housing starts, that's a good sign that the construction boom will continue over the coming months and into the spring sales season. So what does this mean for homebuyers? Well, as more new homes are built, markets will see a better balance between the number of interested buyers and the number of available homes. This will help slow price increases and give home buyers more options when they head out to find a home to buy – whether they're looking to buy a new house or an existing one.