If you’ve been keeping up with local real estate, you’ve heard about the housing supply shortage. The prices are doing up, and we need more homes on the market because they’re flying off the shelves! Here’s what to expect in 2018 from new construction homes, part of the solution for all that supply and demand.
Nationally, about 653,000 new homes will be sold in 2018, which is up 5.4% from last year, reported by the National Association of Home Builder’s Chief Economist, Robert Dietz.
“There will be modest growth,” Dietz said at the show. “We’re going to see some changes in the types of homes that are being sold by builders, with more lower-priced offerings.”
Lower-priced offerings are defined by costing less than $350,000, which may seem like a lot for the “lower-priced” moniker. However, a labor and land shortage has put a damper on new home builders, and cost of materials are going up, which can partly be of explanation for the rising prices. The local median home value and state of the current market also affect prices.
If you’re looking to buy a new home in 2018, you should know about the recent tax reform and what that means for home buyers. Dietz recommends that due to tax reform, you could have more cash in your pocket. Save that for your down payment. However, mortgage interest rates are expected to rise in 2018, making buying more expensive than usual.
Many experts are recommending home buyers to purchase sooner rather than later in 2018, because of these issues. Dietz predicts master-planned communities, or urban villages, will be popular in 2018. Like local communities 5401 North have a variety of homes like townhomes, single-family, local retailers and more. Townhomes are a great option for buyers looking for a price-friendly option. With master-planned communities, you can still get a neighborhood feel and look for a lesser price.
Frank Nothaft, chief economist at CoreLogic, predicted that the South is attractive to potential buyers, another reason to jump on your home-buying process. The cost of living is lower here than on the coasts, and job opportunities are plentiful as the unemployment rate continues to lower in the Triangle area.