The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next few months. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sales Report, the number of building permits issued in June was 850,000, a 0.8% increase from May.
How will this impact buyers?
More inventory means more options. Finally! Buyers who have been priced out of the market or missed out on a “hot” house due to not getting their offer in on time, or even getting into bidding wars – your time is coming. More inventory on the market means buyers may be able to find what they have been searching for, as we’ve had a lack of inventory now for a year at least.
Mark Fleming, First American’s Chief Economist, explained that this is good news for the housing market – especially for those looking to buy:
“The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages.”
How will this impact sellers?
More inventory means more competition. Competition is good for the buyers, but not for our sellers. Yesterday I talked to one of our Orwigsburg sellers (house will be on the market in a week!) and I was happy to show here the extreme lack of competition in her price range in Blue Mountain School District. There are only 4 houses for sale right now in her price range, and when you eliminate houses in developments (hers is in the country on a few acres), and eliminate newer homes (hers is a a rustic, outdoors retreat ideal for a nature lover) – bingo! She’ll be the only one on the market in that price range, in the market area, with a house like this. That’s where sellers want to be, rather than one of dozens of similar priced, similar type homes in an area.
Today, because of the tremendous lack of inventory, a seller can expect:
- A great price on their home as buyers outbid each other for it.
- A quick sale as buyers have such little inventory to choose from.
- Fewer hassles as buyers don’t want to “rock the boat” on the deal.
If you are considering selling your house, you’ll want to beat this new competition to market to ensure that you get the most attention on your listing and the best price for your house.