April 23rd, 2013
In the years following the local housing rush which followed Hurricane Katrina, many home builders have lived through a dramatic slowdown in St. Tammany new construction market. Some experts attribute this to the rapid influx of post-Katrina new residents, and others to the general slowdown in the housing market which has affected the rest of the nation.
However, many locals are starting to notice new construction starting to pick back up, an observation confirmed by a recent report released by the National Association of Home Builders. This is great news for the economy, the housing market and our communities at large. But what does that mean for those looking to take advantage of the new construction housing market within the next year or two?
Why New Construction Homes are on the Rise
The National Association of Home Builders reports that new construction homes are indeed on the rise compared to previous years, and this is a direct result of an improved economy coupled with the fact that it’s still a great time to buy with low interest rates and lower-than-average housing prices.
There are additional factors that can be attributed to a better market for new construction homes. First, the housing market is doing better overall. Housing prices have stabilized and are on the rise for many neighborhoods, especially those close to the city. This has encouraged some homeowners to sell their homes, take a small loss but benefit on the other end, stimulating the housing market by purchasing a brand new home.
There are also first-time homebuyers entering the market, taking advantage of low interest rates and first-time homebuyer credits. These first-timers include college grads, young urban couples and those who have recovered from a foreclosure or short sale at the start of the housing crisis. Even more helpful is that job growth is on the rise, giving once-struggling families more opportunities. While it may be slow and steady, the housing market and overall economy are recovering.
New Construction is What Buyers Prefer
New construction neighborhoods have seen a lot more activity. More people are coming through the models, and more people have a desire to build and move quickly before they miss out on the opportunity for low housing prices and interest rates. Newly built homes are also preferred by many because they possess modern-day amenities, open layouts and new communities. Instead of investing time and money into a fixer upper, couples can move in without having to do anything but paint the walls.
Still, is now really the best time to buy, or should you wait it out? Experts agree that if you can swing it with your current situation, now is the best time to invest in a new construction home. With more demand, experts predict that the market will be less buyer friendly as early as 2014. Also, there is more availability, but not for long.
Soon-to-be Low Inventories
Since there are more people buying new construction homes, many builders are finding that they can’t keep up with the demand. Construction companies took one of the hardest hits from the recession and laid off much of their workforce, with many construction companies shutting down completely.
Many of these companies are still understaffed, and finding help is becoming increasingly difficult. When the recession hit, many construction workers went on to find new jobs, or some simply retired out of the industry. Finding workers who possess modern-day experience regarding home building and energy-efficient upgrades is a challenge.
When considering all of these factors coupled together, there’s no doubt that we’re inching closer to the end of a buyer’s market. While there will still be great deals to be found as the housing market continues to be stimulated, the best deals are to be found now. If you’re ready to buy, contact Stephanie Weeks for information regarding a loan program that fits your needs.