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NEW CONSTRUCTION CONTINUES TO A LUCRATIVE SECTOR OF RED HOT HOUSING MARKET

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Friday April 23, 2021
NEW CONSTRUCTION CONTINUES TO A LUCRATIVE SECTOR OF RED HOT HOUSING MARKET

In March 2021, according to the Census Bureau’s New Home Sales Report, new home sales reached their fastest rate of growth since 2006; new home sales were 20.7% higher than they were in February 2021, and more than 100% higher than they were in March 2020. The New Home Sales Report reports on homes where the contract has been signed, as opposed to when the sale closes, and the numbers indicate that this summer is shaping up to be a very hot market indeed.

While the number of homes listed for sale remained steady from February 2021, inventory was roughly 7% lower than March 2020. Taking these numbers together and considering the inventory deficit of nearly 4 million homes nationwide, it appears that new single-family home construction will continue to boom over the next few months.

Based on the rate of sale, the market currently has a 2.1-month inventory available; this indicates that new construction will be incredibly profitable, as any new home placed on the market is likely to get picked up quickly.

At the Chernov Team we understand that knowledge is power, and knowledge is which real estate sectors are thriving is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.

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