By: Addie, Classic Homes Sales Team Member –
As of February 2015, new home sales nationally are up a whopping 24.8% over a year ago. The increase comes as builders struggle to keep up with the demand for new homes. The inventory of new homes is currently at its lowest point since June 2013. This demand has led to rising construction costs and labor shortages, which further contributes to the lack of new homes.
Experts expect the demand for new homes to rise even higher this year, as buyers rush to avoid potentially rising mortgage rates. This is due to Fed Chair Janet Yellen’s announcement that the central bank will cautiously begin raising interest rates in the coming months. Yellen intends for the increases to be gradual, to lessen the potential for any disruption to economic recovery. Many analysts, such as Investor’s Business Daily, anticipate mortgage rates will stay under 5% for the year.
With the supply of new homes stagnant, the custom home building option is gaining in popularity. Buyers also report that with limited inventory, they are unable to find homes that fit their individual needs. With Classic Homes, the buyer can build what they want, where they want, and within their budget.
Talk to a Classic Homes Sales Manager today to begin planning your dream home!