New Construction: The Saving Grace for Low Inventory
It’s no surprise to agents, lenders, sellers, or buyers, just how scarce the real estate market has been. However, it looks like 2022 is bringing some housing positivity!
According to data from the National Association of Realtors, the share of newly built single-family homes on the market is at a record high as the resale market continues to battle low inventory.
More than 34% of U.S. single-family homes for sale in December 2021 were new construction, which is the highest on record. Due to increasing buyer demand (also not a shocker), homebuilders have been stepping up.
The downside to newly-built homes: higher prices. According to U.S. Census Bureau data, new construction tends to be higher in pricing than pre-owned homes. The median sales price of a new home rose 34.1% year over year in December 2021.
Check out the U.S. Census Bureau & Redfin’s infographic below:
If you’re a homebuyer eager to buy, you’re more likely to see new-home construction on the market. Speaking to your lender and agent is key when entering the housing market and finding the home that best suits your wish list and financial needs.
For more real estate news, stop by Alliance Title’s Blog.