In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:
“60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.”
However, it seems buyers are now shifting their preferences back to existing homes.Continue Reading
Last week, the National Association of Home Builders (NAHB) reported their Housing Market Index (HMI) hit an all-time high in the 35-year history of the series with a score of 83. The index gauges builder perceptions of current single-family home sales and sale expectations for the next six months, as well as the traffic of prospective buyers of new homes.
As the following chart shows, confidence dropped dramatically when stay-in-place orders were originally mandated earlier this year. Since then, it has soared back.Continue Reading
Lumber prices in the U.S. have steadily risen since the COVID-19 outbreak began, due to an increase in demand combined with lumber mill shutdowns.
The price of lumber for September delivery rose 3.1% to an all-time high of $641.60 per thousand board feet, the Wall Street Journal reported. Adding to the constraints caused by the pandemic, the impact of tariffs on wood from Canadian mills continues to cause elevated prices for American construction firms.
Expect to see builders pass on the higher cost of lumber to buyers in the form of higher prices for new build homes, and spec homes already built or under construction.
Many people believe that when it comes to real estate, buyers want something brand new. But according to a recent report, the vast majority of buyers end up purchasing existing homes.
According to the New Construction Consumer Housing Trends Report 2018, only 38 percent of buyers in 2018 even considered purchasing new construction. And the percentage that ended up buying a brand new home? Only 11 percent.
The study results reveal three key areas that influence home shoppers who considered new construction but ultimately choose an existing home — location, timing and price. The appeal of a new home is often outweighed by limited models, availability, “cookie cutter” neighborhoods, and the fact that buyers might wind up putting a lot more money into their purchase — and sooner than they expected (landscaping, window coverings, for example).
If you’ve been thinking about selling your house, now is a great time to make a move. With 89 percent of buyers ultimately purchasing existing homes, your property is exactly what a huge portion of buyers are looking for.
