Lack of Existing Homes For Sale Drive Many to New Home Construction

In the article released today on CNNMoney, Sales of New Homes Inch Up, homebuilders across the country are reporting increased sales going into the summer months of 2012.  This trend reflects the low inventory of resale homes available for buyers to choose from.  In fact, in the Phoenix metro area, we are seeing a month of inventory of existing homes on the market for buyers to look at, and in most cases multiple offers are coming in to sellers.

This is driving many buyers looking for their next dream home to look at new home construction as their solution.  In the SE Gilbert area of Phoenix for instance, new home starts are happening everyday along with new neighborhoods being developed.  In addition, Arizona was named in the article as one of the markets in the country where home prices are increasing at the fastest pace.

Conclusion- Although it will still take a few more years for many sellers to recoup the losses of the mortgage and real estate meltdown of the last decade, prices are going up, short sales are beginning to decline in many areas and sellers are actually able to sell their homes with a profit.  Also, as reported yesterday, rates are still so low historically and so it is an amazing time for buyers too.

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