Homebuilders Aren’t Overbuilding, They’re Catching Up

You might have heard that there are a lot more brand-new homes on the market right now. In fact, about one in three homes for sale are newly built. Here’s what that means for the market and for you: **Why This Isn’t Like 2008:** Back in 2008, the housing market crashed partly because there were too many homes for sale. While some of that oversupply came from builders, the situation now is different. Builders aren’t overbuilding; they’re catching up after years of underbuilding since 2008. Recent data shows that we’re just meeting the average number of homes that should be built in a typical year after a long period of not building enough. So, there’s no danger of oversupply now. **New Home Construction Might Be Peaking:** Builders are slowing down a bit due to high mortgage rates and the effect on buyer demand. This means they’re not constructing as many new homes right now, being cautious to avoid past mistakes. According to HousingWire, builders are completing their current projects but pulling back on starting new ones. **More Options Now, Fewer Later:** If you’re considering a newly built home, now might be the best time to buy. With fewer new homes being started, there might be more options available now compared to later in the year. Lawrence Yun from NAR notes that recent declines in housing starts mean fewer home completions in the coming months. **Work with a Local Real Estate Agent:** An experienced agent can provide valuable insights about builders and new construction in your area, helping you make the best choice. **Bottom Line:** Even though new home construction is a larger part of the market than usual, it’s not a cause for concern. Builders are simply catching up and being mindful of market conditions. If you’re ready to explore new home options, let’s get in touch! --- Does that work for you?

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