3 reasons we may be on the cusp of a building boom
Single-family home construction has been booming ever since the start of the pandemic. Even while dealing with supply chain issues, higher prices for materials and of course the pandemic, work is coming in quicker than it can be completed.
Yes, it’s true larger firms did have delays. However, many of our smaller contractor friends continued to work, and the consumer didn’t even seem phased by the rising costs. In fact, in many ways that is what’s happening in the mortgage market right now. Though rates have spiked to higher than 5 percent in the last month, demand has not cooled, but let’s not get sidetracked. Back to focusing on construction…
Here are three reasons that homebuilding may increase in the coming months.
- Low Inventory. The supply has been low for two years now. This gives builders the advantage of having a large number of potential buyers regardless of the rising interest rates. Builders should continue work, as usual, to bring up the inventory.
- Current Statistics. Current studies are showing that regardless of the fears that homebuilders are having, their sales are actually up and prices have not dropped. If this trend continues in the face of rising interest rates, there will be an increase in construction even over last year.
- High Demand. This ties into the fact that the inventory has been so low for months. There are countless homebuyers out there waiting for properties to be listed for sale. If construction continues to ramp up, there will certainly be a pool of buyers ready to move in as soon as possible.
Contractors are still backlogged to this day, and there are no signs of this changing yet. While much is unknown right now, the numbers are leaning toward a safe and even prosperous future for contractors for the rest of 2022.
Of course, only time will tell which of the many predictions out there will ultimately come true. No matter what happens, our team will be ready to help you close your new construction project – or existing home sale – with the knowledge and professionalism you and your customers deserve. When it comes to your title and escrow work, you can count on us!