2018 is here, and there is good news for those who are looking to purchase or build their very own brand-new home. Currently and throughout the year, the anticipated outlook for home-building is looking extremely positive.
In 2016, the prices for new and custom-built homes had risen approximately 6.3%, according to the Federal Housing Agency. Since then, it has dropped back down by 4.1%. This year alone, the rate of new home sales is expected to increase by at least 7%.
Why the slowdown? It is expected that the construction of new single-family homes has already increased tremendously with the start of this year. Throughout the rest of the year, economists are estimating that roughly 912,500 new homes will be built throughout Northeast Ohio and the rest of the nation.
In the past two to three years, many home buyers were reportedly struggling to find homes – both new and lived in – for sale, due to inventory shortages. A recent study has shown that the baby boomer generation seems to be content to age in their homes rather than choosing to downsize, but there is hope yet for 2018. As the inventory shortage issues begin to reverse themselves, Realtor.com is predicting that the housing supply pinch will start to ease by as much as 2.5%.
We can also expect this year’s long loan-life will bring potentially lower mortgage rates. The borrowings may be sticking around in lenders’ portfolios longer than usual.
2018 is a new year for home buyers and builders! A rise in construction of new homes, lower mortgage rates, and long loan-lives are setting us up for a positive outlook for residential living and building in Northeast Ohio and the surrounding areas.