The tale of supply and demand continues and who will come out as the hero? New home construction to the rescue! During the winter month’s new construction took a break as cold weather made that decision mandatory in some areas of the country. Now as spring arrives and the weather is warming so is the construction industry.
The U.S. Census Bureau reported housing starts were up 37% in March of this year compared to the previous year. That is a promising sign as the housing market is not slowing down and new construction is going to be the answer to the lack of inventory issue. Existing homes are not coming on the market as quickly as they have in the past. Sellers are now facing the same issues as first time home buyers, if you cannot find another home to buy you are not going to sell.
Builders have plenty of reasons to continue to build new homes with the high demand still in play. “With the cost of lumber reaching new highs, however, the higher costs are being passed on to consumers. While new construction is a critical component in rebalancing the current dynamics, lack of affordability will continue to weigh on the housing market for the remainder of 2021,” said George Ratiu, senior economist at Realtor.com. Cost continue to rise, but the demand is still strong and this spring looks like it will be filled with concrete foundations and saw dust in the air. As always if you have any questions about the real estate market and new construction in the Durango area, give us a call. April showers bring May flowers, and new construction.