Builders Expecting Big Sales Numbers For 2013
This month’s HMI showed a slowdown in buyer foot traffic and fewer sales as compared to recent months, but both tallies remained near multi-year highs. However, with respect to the next six months, builders are expected blowout sales figures.
In response to the NAHB question which specifically asks about home sale into the future, home builders are showing the most market confidence since May 2006. For today’s buyers of new construction, this is noteworthy because as the U.S. pool of home buyers grows, competition for new homes grows, too, placing upward pressure on home prices.
This is basic economics and it’s as true in urban centers such as Houston, Texas; and Orange County, California where new construction is booming, as it is for smaller housing markets nationwide including Dayton, Ohio; and DuPage County, Illinois.
Furthermore, low mortgage rates continue to spur demand.
As mortgage rates drop on-pattern toward all-time lows, the mathematics of “Rent vs Buy” have changed. Homeownership costs have dropped to the point where owning a home can be cheaper than renting in many U.S. markets.
The abundance of low- and no-downpayment mortgages have helped, too.
The Fannie Mae Conventional 97 program remains a popular choice among today’s home buyers for its 3% downpayment and allowance for gift funds. The 100% programs of the VA and USDA are in demand, too.
With low downpayment options, homeownership is within reach for additional U.S. households.
Get Mortgage Rates For New Construction
According to the U.S. Census Bureau, there are just 152,000 new homes for sale nationwide — a little bit more than 3,000 per state. New construction homes are scarce, and competition for homes is fierce.
If you’re planning to buy new construction, therefore, and expect you’ll buy in late-2013, you may save money by moving up your time frame. Not only are mortgage rates expected to rise, but home prices are, too. Getting a good deal may mean acting quickly.
Get started on your purchase with a pre-approval. See today’s mortgage rates and build your household budget. Mortgage rates are available online, at no cost, and with no social security number. See how much home for which you’ll qualify today.