May 2013
|
New homes are making a strong resurgence in many areas of the country. Sales of new single-family homes rose 1.5 percent in March to a rate of about 417,000 units, according to HUD and the U.S. Census Bureau. The National Association of Home Builders is predicting a slow and steady rise in home sales — and prices. But builders are facing a number of obstacles as they try to meet demand. If you have buyers on the fence about buying a brand-new home, this information should get them moving and help them commit to buying into the new-home market now. Scarcity of land. Business would be booming in even more markets across the country — except for the fact that quality lots on which to build are becoming scarcer and scarcer. Previous developers sold lots off to investors who are now sitting on property, waiting for the value to climb even higher. Lack of infrastructure. When the market began to sink, builders and developers backed off on preparing land and lots for construction, so now they're having trouble catching up to the demand. Many lots lack roads and utilities that make them ready for construction, and the companies that provide those necessities also need to rev production back up. Paperwork. Even when land is acquirable, the paperwork to get approval for building from the local city or town can take months — or even years. That's not great news for the clients who want to buy now! (But you can plan for the future by preparing to promote those properties when they're ready — let's discuss working together on marketing campaigns and sharing our resources!) Fewer skilled workers available. The construction sector was particularly hard hit by the double whammy of a strained housing market and high unemployment. Now that demand for construction workers is rising, builders are finding they're having a hard time finding the skilled workers who left for other job opportunities. Many younger workers also have decided not to go into construction because of the state of the housing market, and homebuilders are feeling the pinch as older, skilled workers retire and no fresh bodies step up to take their places. Supply chain disruption. Builders and construction workers weren't the only people affected by the housing slowdown. Lumber companies, plumbing and electrical supplies companies, even concrete manufacturers took a hit and slowed down production. Time to get back up to speed. This is what all the above is building to: Builders are working as fast as they can, but since new home construction practically ceased altogether over the past several years, it's going to take some time before companies are able to get back to full-scale production, let alone meet growing demand. If you've got buyers who need a nudge toward making their purchase, I'd be happy to review their finances with them and show them how a missed opportunity now could cost them thousands in the months to come. Let's work together to help homebuyers get the best deals on their brand-new homes! |
No comments:
Post a Comment