Strong Demand

When we think of today’s real estate market, “logical” may not be the first word that comes to mind. However, in certain aspects of it, logic is actually working in full force. Which area do we mean? New Construction. 

Part of the fear of rising rates is that those homeowners with mortgage interest rates below 4% will stay put longer than they normally would in order to not lose their rates. This means that pre-existing homes are just not hitting the market and that inventory is extremely low. Here’s where logic comes into play: if there aren’t pre-existing homes for sale, how do you get new homes on the market?

You Build Them. 

The National Association of Home Builders’ (NAHB) monthly confidence index rose by one point in July, to 56, the trade group reported to Realtor.com on Tuesday. This is the 7th month that the confidence index has risen and is a full point higher than it was in June of 2022. In fact, it’s the highest confidence ever reported. 

The biggest takeaway of the NAHB report is that: For the last few months, new homes have been a bright spot in the housing market, as builders are able to meet home-buying demand amid a scarcity of listings of previously owned homes. The gauge for steady traffic from prospective buyers rose three points.