Monday Market Update: Builder Market Share Hits Near Record High
A new construction update with some surprising stats…
Real estate conversations in the last few years have largely centered around both demand and inventory constraints for existing homes. Historically, new construction represents around 10% of housing supply at any given time. However, builders now (proudly!) report that just under 1/3 of existing housing supply is new homes. In addition, builder sentiment rose in April for the 4th straight month.
CNBC cites 3 main reasons for this change:
#1: The supply of resale homes remains scare, as there are 25% fewer listings of existing homes than 12 months ago.
#2: Slightly lower mortgage rates are supporting increased buyer demand, while homeowners accept the reality that we will not see the lows of the last several years anytime soon.
#3: Both current sales conditions and sales expectations of new builds rose by several points within the National Association of Home Builders/Wells Fargo Housing Market Index. When both the future and present look bright – prospective buyers feel better about making a move.
Have you seen any new construction trends emerge in your community? Do you know anyone considering a new build? Are you familiar with new build incentives such as mortgage buy downs? Let’s keep the conversation going and the options open!
All our best,
Bobbi & Team
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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