Is New Home Construction Slowing Down?
Within our current real estate market, there is a high demand for homes. Many individuals want to buy homes due to the low interest rates. And while we currently have a substantial supply of newly constructed homes available, the future supply of new homes might be in jeopardy.
Recently, the amount of permits issued to build new houses has decreased. From October to November permits were down by 10.4%, which is 0.9% lower than last year. This data suggests there will likely be a restricted supply of newly constructed homes available in the future.
Based on economics, the limited supply will likely cause home prices to increase. There is also an increased demand for homes because many individuals want to buy before interest rates spike.
We must also take into consideration the seasonal real estate cycles. Many future homeowners do not buy homes around the holiday season. Often builders do not want to construct new homes in the cold winter months either.
There is still hope for the 2017 market though. While the market might be currently slowing, many professionals predict that 2017 will be better for homebuilding than 2016. Due to low interest rates, the presidential election, and young adults moving out of their parent’s homes; the homebuilding industry will likely rebound.
By Anna Hellman
-
Articles
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- August 2015
- June 2015
- May 2015
- March 2015
- November 2014
- March 2014
- October 2013
- September 2013
- August 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- January 2012
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- February 2011
-
Calendar
November 2024 M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 -
Meta