New construction is on the rise. Homebuilders are reporting that there is an increase in requests for single-family homes in suburban neighborhoods that have lower-density populations due to the COVID-19 health crisis.
With this reality, home builder confidence is rising which is bringing back opportunities to buy new homes. According to the National Association of Home Builders (NAHB):
“New home sales jumped in May, as housing demand was supported by low-interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April.”
The gap between the high demand from purchasers and home to buy may be narrowed by new construction. Dean Mon, Chairman of the NAHB stated:
“As the nation reopens, housing is well-positioned to lead the economy forward…Inventory is tight, mortgage applications are increasing, interest rates are low, and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.”
So, if you are debating whether you want to sell your current home and move into a “custom-built” new home, this may be the year.
On that note, pending home sales rose by 44.3% in May. The highest month-over-month gain that the National Association of Realtors (NAR) has tracked since January 2001. This jump means that home buyers have entered the market again and are purchasing homes. Lawrence Yun, Chief Economist for NAR said:
“This has been a spectacular recovery for contract signings and goes to show the resiliency of American consumers and their evergreen desire for homeownership…This bounce-back also speaks to how the housing sector could lead the way for a broader economic recovery.”
There is still a big deficit in homes for sale. Homebuyers are actively looking for homes now. If you were on the fence due to the health crisis, now may be your time to jump in. Especially if you live in a rural or suburban area.
Recently, news.com release a report revealing that buyer’s views of listings are leaning heavily to more suburban and rural properties.
- Urban – 7%
- Suburban – 13%
- Rural – 16%
In this report, Javier Vivas, Director of Economic Research for Realtor.com gives this thought:
“This migration to the suburbs is not a new trend, but it has become more pronounced. After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.”
It also appears that the health crisis has had an impact on the luxury second-home market. Many states stay at home orders and their social distancing edicts have made people look again at homes with extra space. Homeowners are seeking to find a second home within driving distance of their primary home with more room or extra land.
This all boils down to people wanting to leave the big cities, at least for the time being, out to where they have some space. The open floorplan is also waning in its popularity as people need to have privacy for working from home and home offices have become popular again. Or at least an extra room where you can shut the door.
Either way, people are on the move and I am ready to help you buy or sell in the Greenville area. Please contact Victoria Cottle by email email@example.com or call (864) 275-3953 for your real estate needs in the Upstate of South Carolina!
Victoria Cottle is a Realtor® in the Greenville South Carolina area and if you, a friend, or a family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.