Build it and they will come – or at least, buyers will come even before you build it.
The real estate industry is hot; but builders are having a hard time keeping up with buyer demand. According to the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales for single-family houses plummeted 18.2%, which is the biggest decline since 2013.
While construction may have slowed down, buyers still pushed new home sales 8.2% higher than a year ago. New home sales rose 6% in the Northeast, 24.7% in the Midwest, and 23.2% in the South. The West saw sales dropping 9.3%.
So buyers are ready to make that leap and purchase a home – but what’s up with construction?
Economists are pointing to the rising costs of building materials. Materials, specifically lumber, have gone up 59% year-over-year in February.
One big thing to remember: builder optimism remains high. Economists are expecting this drop-off to be temporary and are looking to the spring months for a high rebound.
For more real estate news and insights, check out Alliance Title’s Blog.