Increasing Home Demand Leaves Builders Scrambling

The positive momentum continues for the homebuilding industry, which has seemingly been caught off guard by the surge for new homes. In fact, eager homebuyers across the country are finding there simply aren’t enough houses for sale, and unusually low levels are creating widespread problems for buyers and sellers alike. This limited availability has led, believe it or not, to bidding wars and bubble-like price jumps in places like Sacramento that have suffered from major declines. A recent New York Times article noted that the number of homes for sale is at its lowest level since 1999, but prices nationwide rose 7.3 percent over the course of 2012. While builders have experienced significant financial loss during the past six years and with many facing a lack of skilled labor, developers are still moving forward to accommodate demand for new homes — monthly permit requests have skyrocketed and nationally, the construction industry added 48,000 jobs in February, the biggest increase since 2007. All in all, the turnaround for new homes is still great news, no matter if you’re selling or building.

Sandy Keedy, President and Creative Director