Potential home buyers in today’s real estate market are struggling for one big reason – there are not enough properties available for purchase. Serious home shortages are driving real estate prices skyrocketing nationally, and buyers are increasingly stranded. bidding war and prices do not match areas that are usually within their financial reach.
But there has been some good news lately in the construction industry. In May, housing commissioning increased by 3.6% compared to April.
Residential buildings refer to the number of residential buildings, the construction of which begins to varying degrees. The growing number indicates that more homes are being built, and once completed, the housing market should have more inventory from which buyers can choose.
But is buying a new home a good idea?
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Pros and cons of new construction
Adding newly built homes can benefit buyers even if they are not buying new construction. This is due to the fact that the more real estate offers in general, the more options buyers have and the more demand can begin to be met. Once demand has calmed down a bit, house prices could follow suit.
Meanwhile, for those interested in a new home, the growth in new homes is a good thing. But is new construction right for you?
One thing you should know: due to the rising cost of lumber and other common building materials, a newly built house will is more expensive this year than you usually pay. This means you will need to prepare for a higher down payment as well as a larger one. mortgage to finance this house. The good news is that mortgage rates are very competitive these days, which can offset the cost of additional loans.
On the other hand, if you buy new construction, what you spend in the form of a higher purchase price for your home, you can save on less maintenance and repairs in the near future. A common practice for new builds is a builder warranty that guarantees coverage of all production issues for at least a year.
Plus, when you buy a new design, you get completely new home appliances, from a washing machine to an air conditioning system and a water heater. These items are usually covered by their own warranties, so you are protected from repair or replacement for several years.
Will housing construction continue to grow?
Supply chain problems make it difficult to obtain the common building materials needed to build houses. However, in this regard, things seem to be improving, and if the supply continues to grow, the same may be true with new construction projects.
One of the problems that may arise in the very near future is the lack of construction workers. Many industries are now experiencing labor shortages, and housing construction is no exception. However, in this respect, things could improve if increased unemployment benefits disconnected at the beginning of September, and more and more people are eager to return to the labor market. Thus, there is reason to believe that the number of commissionings will resume in the second half of the year.