There are many parts to a healthy housing market. Whether you’re talking about home prices, mortgage rates, new home construction, or another housing metric, each one of them have an effect on home buyers and sellers – even if some of those effects aren’t as obvious as others.
Take new home sales. If you’re not looking to buy a new house, how does it affect you? Well, for one, when new homes are in demand, more new homes get built. And, when more new homes get built, the boosted inventory of homes for sale can help reduce price increases. For example, the current housing market’s main challenge is too few homes for sale. Because inventory has been low in many markets, buyers have seen prices go up and choices decline.
So, news that new home sales increased nationally for the second straight month is encouraging because increasing sales could help spur more new homes to be built, which would help balance the market and keep prices from becoming unaffordable for the average buyer.
Locally here in Fremont, the city has permitted 21 new residential homes thru July with 6 more in review. Compared to previous years, this is quite an increase! So, even if you aren’t in the market for a new home, you could indirectly benefit from more new homes being bought and sold in your neighborhood.
This advertisement was provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding your real estate needs.
For many years now, the average size of a newly built home has been going up. In fact, by 2015, the typical new home was 2,689 square feet – by comparison, the average was 1,660 square feet in 1974.
That longtime trend took a step back last year, however. In 2016, the average new home fell 55 square feet. And, though that doesn’t sound like much, it is the first time in eight years new homes were smaller than the year before, according to Rose Quint, the National Association of Home Builders assistant vice president for survey research. “The data on new home characteristics show a pattern,” Quint said. “2016 marked the end of an era that began in 2009 when homes got bigger and bigger with more amenities. I expect the size of homes to continue to decline as demand increases from first-time buyers.”
But though Quint believes home size will continue to fall as more first-time buyers enter the market, she doesn’t expect added features and amenities to become less popular. In fact, Quint says a majority of home buyers would prefer amenities and features over square footage. “More than two-thirds are willing to trade size for high quality products and features,” Quint said. Among the most coveted home features, a separate laundry room, energy-efficient windows and appliances, outdoor living space, exterior lighting, and a full bath on the main floor rank high.
This advertisement is provided by Jennifer Bixby, the broker for Don Peterson and Associates Real Estate, 100 E. 6th St. Jennifer can be reached at 402-721-9700 for answers to questions regarding real estate.