New construction homes have steadily taken a larger share of the pie over the past decade, but during the coronavirus pandemic, there has been a remarkable acceleration. According to Redfin Lead Economist Taylor Marr, there are two main reasons for this: a rise in home construction and fewer Americans listing their houses for sale.
“Homebuilding has become more attractive and profitable during the pandemic because of record-low mortgage rates and strong demand for homes,” Marr claims. “At the same time, many homeowners have chosen to stay and refinance or remodel their existing homes rather than sell them, which has led to new construction taking a larger share of the market.”
In the US, new residential construction projects have increased by 20% each month since the pandemic and reached the highest level since 2006, in March this year. This goes to show that homebuilders are becoming more optimistic and hopeful about the current housing situation, notwithstanding the shortage in lumber and rising costs of construction.
According to Melanie Miller, a Redfin real estate agent in Houston, buyers choosing not to deal with bidding wars prefer new construction homes because builders rarely impose deadlines for offers. Furthermore, they can purchase a house at the asking price instead of bidding at a higher price.
With record-low mortgage rates and strong demand for homes, we think this is an excellent time to invest in real estate. With an investment mortgage, you will usually be able to tell whether you are approved relatively quickly. America Mortgages has pretty cut and dry standards when it comes to getting you approved for an investment mortgage. America Mortgages has loan programs for U.S. Expats with or without U.S. credit. We understand that living abroad often changes factors and your ability to borrow in the U.S. Our loan programs are tailored towards your exact situation.
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Source: Redfin