I think most of us in the real estate business, and probably anyone whose been listening to the news, knows that new construction home builders have been some of the hardest hit during this current real estate decline. Builders have been going out of business, slashing prices on market homes, and I’ve seen very few currently building spec homes, or any homes for that matter.
So I was a little surprised to get this article today from the National Association of Home Builders which basically said that while overall starts fell 12.8 percent to a record-low seasonally adjusted annual pace of 458,000 units, the decline was entirely confined to the multifamily sector, where production fell 46 percent to a 90,000-unit pace for the month, while single-family starts posted a 2.8 percent gain to 368,000 units. A gain of 2.8%! I’m not going to lie, like I said earlier I was surprised. Single-family housing starts rose for a second consecutive month in April, posting a 2.8 percent gain to a 368,000-unit pace for the month. At the same time, issuance of single-family permits, which can be an indicator of future building activity, rose 3.6 percent to 373,000 units.
So are you thinking of building a new home? Wondering whether or not now is the time? There are a lot of things to consider when weighing your options for new construction. Check back tomorrow when I’ll discuss some pros and cons along with why you should always use a Realtor- even in new construction.