Build a Home..The Forecast Ahead
If you would like to build a home, you may want to act now. The forecast shows new home construction volume is heading up. This means that pricing will be heading north and subcontractor and land supply availability will shrink as time goes on. There are some really good contractors sitting at home right now…but that will soon change. And as for lots and land, the best options are there for your taking now.
Let’s take a look at what some of the experts predict for the near future in home building.
Fannie Mae – Predict single and multifamily housing starts to rise 19% to 888k in 2013
National Association of Business Economics – Predict starts to rise 13% to 850k in 2013
National Association of Home builders – Predicts single family housing starts to increase 26% in 2013
Moody’s Analytics Chief Economist Mark Zandi – Forecasts 1.1 million total housing starts in 2013
Why The Increase?
We’re just coming out of one of the worst housing recessions in history so why are we seeing an increase in new housing starts? According to the chief economist for the National Association of Home Builders, David Crowe, there are several reasons for the new home surge.
- pent up demand – households have been forming over the last four or five years and have held off on purchasing their dream home
- rising consumer confidence – people are starting to see some positive signs
- growing rental demand – as more and more people look to move out of their friends or parents homes, they are looking for a place to live. The increased demand on rental units comes with increases in rent. There comes a point where you can build a home for a similar cost as renting and when that happens, the new build wins every time.
Build a Home Now Vs. Later