The coming year in real estate is going to be quite the wild ride if you’re a homebuyer! The forecast for 2018 could be a little challenging, but with some planning and determination, you could be settled in a brand new home sooner than you think.
There are a lot of factors that are pushing more and more potential buyers into the new home market. The stock market is cresting at a record high right now, and since 2010 over 16 million new jobs have been created. The resulting rising consumer confidence is giving more families the opportunity to buy new construction.
This surge of potential buyers is making the market for new construction more competitive. Many builders are working as fast as they can to meet increased demand. In fact, the number of new homes on the market is expected to rise an additional 8% in 2018, to 670,000 in sales. Most of the growth is expected in the mid to upper price ranges across most markets nationwide, as overall, home prices will be on the rise as well. Buyers can expect an average increase of 3.5% in 2018. The Southern region of the US, in particular, is expected to grow at a greater rate than the national average.
How is this affecting buying habits when it comes to new construction?
Potential buyers are planning to spend a little more of their disposable income on housing, even if it means eating at home more frequently, putting off shopping for new clothes or taking expensive vacations. Other buyers are looking at homes farther from city centers, where the cost of homes and the cost of living is lower. Some buyers are looking for homes that can be customized for specific needs such as extended family groups, which allows for more economic day to day living for a larger number of people. Elderly parents and adult children may have trouble supporting households on their own, which makes combined residence options more popular.
Builders who offer attractive floor plans for smaller homes may benefit as well. Some buyers will choose more compact homes in order to reduce their monthly mortgage commitment. Many builders are actively marketing homes with four or less bedrooms to attract this growing demographic.
And the recently passed tax cuts could have a huge effect on the new construction market. We aren’t sure yet how buyers will respond. The promised gains in the weekly paycheck under the new tax laws would definitely be a positive for housing, but some anticipated reductions in tax benefits for homeowners could lead to fewer sales and impact prices negatively over time. Experts are taking a “wait and see” stance when it comes to the fallout from the upcoming tax changes.
If you’re looking at the possibility of buying new construction in the upcoming year, having experts evaluate your individual situation is worth its weight in gold. At Ernest Signature Custom Homes, our staff is committed to building long term relationships with not only buyers, but with the community at large. Our goal is to get to really know each person that walks through our doors. Our team specializes in matching each family with the perfect home – regardless of which one it is. Experience the Ernest difference…we can be reached by email or by calling 912-660-9673. When it comes to finding your ideal home, we’re with you all the way!