Homebuilder sentiment rises into positive territory
According to a recent survey from the National Association of Home Builders / Wells Fargo Housing Market Index, homebuilder confidence rose five percentage points to a 50 / 100 score. This month is the first time in almost a year that the survey was in positive territory and marks five straight months of improvement.
“New home construction is taking on an increased role in the marketplace because many home owners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes at a very low level,” said NAHB Chairman Alicia Huey
Of the index’s components, current sales conditions were up five points to 56 / 100, sales expectations for the next six months climbed seven points to 57 / 100, and buyer traffic climbed two points to 33 / 100.
Where is the best place to live in the US for 2023-2024?
Chicago Bears fans will be unhappy to see this, but Green Bay, WI has been named the best metro area to live in the country for 2023 – 2024 by U.S. News and World Report.
Green Bay ranked near the top of metro areas surveyed for quality of life while having the third lowest housing cost out of the 150 areas included.
Cost of life factors that Green Bay won out on were short average commute, low risk of natural disasters, low crime rates, and relatively healthy air quality.
Is there good news for first-time homebuyers?
Given the current lack of inventory in the market, recent news on new homebuilding projects should be music to the ears of first-time homebuyers. More projects for affordable housing are starting to roll out, and there should be a noticeable increase in entry-level homes in the next few years.
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available,” says Ali Wolf, chief economist of Zonda, a building consultancy.
Builders have downsized the median square footage of a new home to 2,270 sq. ft., and are producing 6% more entry-level homes this year compared to last.
Townhome construction has increased from 11.5% of all single-family homes to 15% of the total market as of Q4 2022.
If you’re a first-time homebuyer looking to get into the current housing market or just starting to plan, check out our detailed guide to buying a first home. A little preparation now could save you a few headaches in the long run.
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