The best indicator of how many new homes were built and come on the market within the next few months is by the number of permits that had been issued for single-family homes. According to the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development Residential Sale Report, the number of these permits were up by 7.7% over this year compared to last. Locally, according to the California Homebuilding Foundation, 35,000 single family permits have been submitted since the first of the year for the Bay Area, with 7,000 alone just in June 2017. And Governor Brown’s office recently announced a housing deal with 15 housing related bills to be considered for legislation.
How will this impact buyers?
More homes in inventory results in more options. Danielle Hale, Realtor.com’s Chief Economist, explained. This is good news for the housing market – especially for those looking to buy:” (A nationwide lack of homes to buy has led to a run up in prices with tight inventory affecting most housing markets.) Eventually, the pickup in single-family home construction will mean [buyers] will have more options. Especially with the limited number of sales right now, more options are really needed.”
How will this impact sellers?
More homes in inventory results to more competition. Today, because of the tremendous lack of inventory, a seller can expect:
- A great sales price on their home due to the multiple buyer bids.
- A fast sale due to the lack of options for buyers
- Fewer hassles as buyers don’t want to “rock the boat”on the deal
With an increase in competition, the seller may not enjoy these same benefits.
“As new construction continues to increase, home shoppers will eventually have more choices and a bit more time to make purchase decisions compared to today’s quick-moving housing market”, Hale stated.
If you are considering the sale of your home, it might make sense to beat this new construction competition to the market.
If you are looking to buy or sell, please contact me