Why are New Homes in Such Demand?
March 16, 2021
In October of 2020, Lawrence Yun, the chief economist at the National Association of Realtors, said "We are simply facing a housing shortage, a major housing shortage.”
Fast forward to today, and with continued low-interest rates, people buying bigger homes amid the pandemic because they are working remotely, and many fleeing the cold northern winters for warmer climates, supply in southern states is even more critical in the current environment. In addition, a full 38% of new home buyers are “Millennials” who are getting married, having children, and buying their first home.
There are other challenges facing ALL builders that include the price of building materials, lack of lots, and shortage of labor.
The result of all this is simple supply and demand -- remember the toilet paper “crisis” in the early days of the pandemic? – since the housing market has actually been struggling to keep up with demand since the 2010s. And the resale home market is no better. Homes are being snatched up before yard signs can be installed and many are subject of bidding wars.
At Mungo Homes, we’re being as transparent as possible to set proper expectations. While no one wants to make a snap decision about a large purchase, it is recommended that you have financing in order before making an appointment to see a new home; do your homework about the community, floor plan options, and homesite; and be ready to make a decision quickly. That perfect dream home you tour today will likely be gone tomorrow and the cost to rebuild it will increase and so will the sales price!
For more on current market conditions: