Thinking about building a new home?
If you aren’t in the market for a new home, why should you care about the New Home Market?
Well, for starters, it plays a very important role in the health of the housing market. And that affects all buyers, not just new home buyers. How? Simply put, new home construction is the quickest way to add homes for sale to the market. And, when more homes are added, buyers can be more choosy, which results in less competition and fewer home price spikes. It is the old law of supply and demand.
In other words, when new homes are being built and sold, the overall real estate market benefits. This includes buyers looking for an existing home in a more affordable price range.
So, if that’s true, how’s the New Home Market doing?
According to the latest numbers from the Commerce Department, new home sales were 11.6 percent above last year’s level in April, which is good. Even, though year-over-year numbers are positive, recent revisions to totals from the first three months of the year were revised downward. This indicates some lingering weakness in the market.
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Jennifer Bixby is the Broker and President of Don Peterson & Associates. Her office is in the Downtown Fremont location at 100 E. 6th.