NEW-HOME CONSTRUCTION SALES BOOSTING INVENTORY
By United Country Auction ServicesApril 02, 2021
With inventory continuing to be at record lows in 2021, a new trend is developing in the real estate market
With inventory continuing to be
at record lows in 2021, a new trend is developing in the real estate market
regarding new-home construction. Building permits have hit the highest they’ve
been since 2006 and are up 22% from a year ago.
“Land is just so hard to come by
these days, so what we have noticed is builders are buying smaller plots of
land inside cities/towns and building on those,” said Mike Krieg, a real estate
agent for United Country Real Estate and builder in Colorado. “These urban
infill type projects are getting really popular. They are giving people the
opportunity to get what they want while also staying in their preferred
location.”
Of the new construction being
built, many of them are more energy efficient and have more technology
integrated into the homes. It’s called “green building” and it is gaining
momentum among current buyers in the market. The homes are specifically
designed for the buyer and, while they may cost more upfront, they will save
you money in the long haul.
“These are really high efficiency
homes with modern technology,” said Krieg. “Even homes that are 10 years old
don’t have these features and these are things buyers want. They are even
willing to pay up to 12% more for them. They are going so fast that they are
selling faster than we can build them at this point.”
While many buyers are excited
about this growing trend, it doesn’t come without its headaches for others who
are involved. Krieg predicts a “fight” among existing homes trying to sell and
new homes being built. It can also be difficult for appraisers as the value of
the homes steadily increase as they are being built. However, experts say the
market for new-home construction remains favorable as we dive deeper into 2021.
A recent MarketWatch article
reported, “Demand among homebuyers remains very high, driven by millennials
reaching their peak home-buying age and households looking for more space in
the suburbs. That high demand continues to be met by low supply in the market
for existing homes, meaning that more first-time buyers are being pushed into
the market for new homes.”
“The reality is, real estate is
the key to wealth in the country, so it’s not slowing down anytime soon,” added
Krieg.
View the full story here: https://rismedia.com/2021/03/31/united-country-real-estate-new-home-construction-sales-boosting-inventory/?fbclid=IwAR0cY3kJU5fHnS93Ai94oyTWi1DaBbSGJwhfqLeoQAZXoYQBCzQhtDEnNbE