Leading experts are optimistic that the nation’s economic recovery is set to begin during the 3rd quarter of 2020. Their claims continue that the housing market is poised to lead the economy out of recession.
Builders have a renewed confidence about the demand for homes which means that new construction may play a large role in this effort to boost the economy. The National Association of Home Builders (NAHB) stated that new home sales (US) in May had a 17% gain over April..
There has been an increase in demand for single-family homes in suburban regions with lower-density populations, as a result of the pandemic crisis. Authorized building permits for new residential construction is on the rise, as are housing starts. The graph below indicates this increase.
While housing permits and starts are both considerably lower than they were one year ago, the new construction market is building its way back up which indicates trends are moving in the right direction. This is especially true for having an impact on economic recovery. Brand-new homes will also help narrow the gap for inventory at a time when home buyers are so eager to make a purchase.
With low interest rates and increase of mortgage applications, confidence in the market is rising. Builders are already receiving more online and telephone inquiries regarding new construction, according to the NAHB.
Tentative sellers may now possibly look forward to moving to a newly-built home designed to their liking – an option that was not so readily available one year ago. Now may be the time they finally take advantage of high buyer demand and, move to a new dream home of their own.