Americans want to buy homes. The job market is strong, mortgage rates are low, and people are ready to make a move. However, though conditions are largely favorable for prospective home buyers, there are some remaining challenges. Among them, low inventory tops the list.
Low Inventory, Low Home Rates
In many markets, there are too few homes available for sale. Even with low mortgage rates, when there are more buyers than homes, finding a house to buy becomes more difficult. It also pushes prices higher. The quickest solution to this problem is building more homes. And, if new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development are any indication, the year is ending on a high note. That’s because, their most recent residential construction report shows the number of new homes that began construction in November was 13.6 percent higher than at the same time last year.
The data also shows that permits to build new homes moved to a 12-1/2 year high. Both are signs that new home construction is ramping up as the year ends. That, along with low mortgage rates, are encouraging for next year’s market and anyone hoping to buy a home anytime soon. More from Reuters here.
Take advantage of the current strong job market and low mortgage rates by getting pre-approved here.