Monday Market Update: The Latest News On New Construction

A new month is here and with that, the Bobbi Decker Real Estate Team is talking about a topic we have not covered yet this summer – new construction.

Discussions in the past have focused on how much of a dent new construction could realistically make in the housing shortage, and what type of homes were most in demand. That discussion has turned with the tides a bit and is now more centered on the rising costs (like everything else!) as well as the increased demand in some regions.

The 3 articles below cover the latest news on new construction – enjoy! 

_ _ _

Do You Need a Realtor for New Construction? Here’s Everything to Know

One of the biggest myths with regards to a new property purchase is if you need a Realtor®. While there us rarely one answer that applies to every situation, we highly encourage you to read this article on what your own agent can & will do for you that a builder’s agent may not. 

Excerpt: “It’s a good idea to have your real estate agent accompany you on your first visit to the new construction. Why? Because the builder (aka the seller) will be responsible for paying the commission, and needs to know if you’ll have a real estate agent representing you. So bringing your agent to the first visit will make it clear that the builder’s agent will be on the hook for paying commission. Some builders might even refuse to pay your agent a commission if you don’t register the agent the first time you visit the home on a new construction site."

_ _ _

Some Buyers Turning to New Construction

You may have heard that some buyers are exiting the market – but not all. Interestingly, 21% of prospective buyers reported looking for a newly-built home in Q2 of 2022. In addition, this is the first increase in new home demand after falling steadily for five quarters. 

Excerpt: “Regionally, the increased interest for new homes is driven entirely by the West, where the share of buyers looking to buy a newly-built home rose from 24% in the first quarter of 2022 to 30% in the second quarter. In contrast, the share declined in all other regions during this period.” 

_ _ _

5 Factors Drive The Cost Of New Homes — And All Of Them Are Squeezing Builders And Buyers Now

Just because new homes are in demand in the west – does not mean that builders can deliver. This new article from MarketWatch reveals the 5 Ls of home building and where they stand today: Labor – Lumber – Lending – Laws – Lots/Land. 

Excerpt: “Every single one of these factors is presenting a challenge to builders at the moment, and that in turn is putting pressures on homebuyers, renters and others caught up in America’s housing sector.” 

_ _ _

Have a great start to August!

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/