If you're currently searching for a home, you've probably noticed that there aren't many houses available for sale. This means you're stuck with a limited selection of options. But don't worry, if your main struggle is finding a place you really love, consider checking out newly constructed homes. They can be a fantastic alternative for you.

““Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.””

— National Association of Realtors (NAR)

So, here's the deal. I want to fill you in on a super important number that tells us how many new homes are being built all across the country. They call it "new residential completions." It's basically a fancy way of saying that these are brand spanking new homes that are completely finished and good to go – no more waiting around, you can move right in!

Check out this graph I found. It's got some interesting data from the Census about new-home completions over time. You'll see the trend of finished housing units represented by the different bars. The black bar shows the long-term average for the number of completed homes. It's pretty neat to see how things have been shaping up over the years, don't you think?

If you take a look at the left side (highlighted in orange), before the housing crash happened, builders went over the usual number of homes being built. This ended up causing too many houses to be available for sale, which then caused the value of homes to drop. And guess what? That was actually one of the reasons why the housing crash in 2008 happened.

Well, ever since then, we've seen a drop-off in the number of new homes being built. Builders just haven't been able to keep up with the historical average (you can see it in the red line). This lack of construction has led to a shortage of available homes in the market for several years now. And this shortage is one of the main reasons why our current inventory levels are so ridiculously low.

I've got some good news for you! According to the latest report from the Census, builders are actually keeping up with the long-term average. This means that they're bringing a lot more newly built homes into the market than they have in a long time. It's definitely a positive sign!

So, guess what? Residential starts and permits are really picking up steam these days. Starts are basically homes where construction has officially started, like they're actually building the thing. Permits, on the other hand, are homes where builders are planning to start construction in the near future. And get this, since both of these are on the rise, it's a pretty clear indication that we're gonna have a whole bunch of brand new homes on the market before you know it. How cool is that?

What This Means for You

Good news for you - there are more newly built homes in different stages of construction, which means you have a whole lot more options to choose from. If you're keen on moving right away and timing is crucial, it's a great idea to get in touch with a local real estate pro. They can help you discover the homes that have recently been completed in your area. And if the construction work is all wrapped up on those homes, you can expect to move in pretty darn quickly!

If you're willing to wait for a bit and you like the idea of making a home uniquely yours, why not ask the agent about homes in your area that are currently being built? By buying a home that's still in progress, you can have a say in choosing the features and finishing touches. And if none of the homes you've seen so far match your preferences, customizing one to your liking might just be the perfect solution.

Having a trustworthy real estate agent is super important no matter what. They're the experts who know all about the properties in your area and can give you personalized advice based on what you're looking for. So whether you have specific preferences or need guidance on finding the perfect neighborhood, they've got you covered!

Bottom Line

I totally get it - it can be pretty tough to find a home you love when there's such a low inventory. But you know what? Maybe it's time to think about exploring new-home construction instead. If you're interested in diving into that topic, why not let's chat? That way, you'll be connected with a real expert who can guide you through all the options available in our area. Let's make it happen!