If you have been looking for a home, or have recently bought one, then you know how chaotic the current seller’s market is. Homes are flying off – and some are being sold before even going on. It’s hard to keep them on the shelves when demand is so high. However, the demand for homes is only supposed to get higher.
As for the rest of this year, new home sales are expected to rise 10.7%, according to the National Association of Realtors (NAR). People are diving after new homes, as builders can’t seem to put them up fast enough. It’s clear that buyers are looking to build their dream homes in 2017. The NAR also predicts that home prices, of new and existing homes, are expected to rise 5% in 2017 and another 3.5% in 2018.
On the Up and Up
“Several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction,” Lawrence Yun, chief economist of the NAR, said. “This is why many of these areas— in particular several parts of the South and West [parts of America] —are seeing unhealthy price appreciation that far exceeds incomes.”
New home construction is only growing, as we have seen here at New Homes and Ideas, which is great news for buyers. More new homes means lessening of the current housing shortage. The most new homes, according to Realtor.com, finished in the first part of 2017 were in the South.
Flexibility is Key
Lynn Johnson, of Bamboo Realty in Raleigh, advises that buyers be flexible when looking at homes. Because of how quickly homes are going, it’s important to be open to different options. Do you have to have four bedrooms, or would you be open to three? Johnson also said that in Raleigh, homes are usually selling for more than the asking price. Brokers advise that if you like a house, put in an offer right away, because sellers are expected to get multiple offers.