In recent years, the United States has seen a striking increase in new residential completions and constructions. This phenomenon has both positive and negative implications for potential home buyers. On the one side, the increased supply of housing units may give buyers more options and possibly stabilize housing prices.
However, those considering buying a home may find navigating this dynamic and cutthroat market difficult. Real estate professionals are crucial in guiding buyers toward making well-informed decisions as they take advantage of this surge in new residential developments.
The Surge in New Residential Completions
New home completions have significantly increased recently in the US housing market. These are newly built homes that are finished and ready for occupancy. A strong economy and increased housing demand have encouraged developers to take on large-scale building projects.
As a result, a constant supply of brand-new housing units, including single-family homes, townhomes, condominiums, and apartment buildings, are being introduced to the market.
Data from the Census show the trend of new home completions over time. Permits for future construction rose to a 12-month high as previously owned houses for sale dropped. This significant shortage of existing homes for sale has paved the way for new construction to dominate.
In an article from the National Association of Realtors (NAR), the chairperson for the National Association of Home Builders says,
“Demand for new homes is strengthening because of a lack of existing-home inventory.”
Additionally, home starts and permits are accelerating. Starts are homes where construction has officially begun. Permits are homes where contractors intend to start construction in the very near future. Since starts and permits are gaining momentum, more newly built homes will be coming soon.
Implications for Potential Home Buyers
The rise in new residential completions gives potential home buyers a more comprehensive array of options. With more houses on the market, buyers can browse different locations, designs, and amenities to better suit their needs and preferences.
If you’re planning to relocate right away and timing is crucial to you, consult a local real estate agent to check for recently completed homes in your area. If you have more patience and are not in a hurry, customizing a house from the ground up might appeal to you.
Purchasing a house still under construction lets you choose the features and finishing. However, if none of the houses you’ve seen thus far do not rise to your standards, the best option might be to design one.
Your Trusted Partner in the Home Buying Process
While the US housing market presents a range of options, buyers face tough competition and information overload. In this scenario, the expertise of real estate professionals becomes invaluable.
We at Blue Pacific Real Estate have market insights and provide personalized assistance to help home buyers find their ideal home amid new residential developments. Ready to explore some houses? Call us at (206) 650-9419.