No question about it, new home construction around town has picked up since the first of the year. While noting like boom days a few years back, builders are back to work, perhaps at pre boom levels, building homes in all price ranges. Hard data are difficult to gather and it's difficult to say what's causing this up tick in construction, but several things may be driving buyers. First, folks may just be tired of waiting, second, interest rates remain historically low for those who qualify and third, some of the new homes sitting on the market have been sold and inventory levels are down from a year ago.
One thing for sure, the market is more competitive than ever as the many foreclosures and short sales continue to push prices lower. Home buyers are all looking for a good deal and all expect to spend less money than a few yearts ago, so builders will have to squeeze their profit margins and be ready to bargain. Buyers who are serious have their financing lined up and ready to sign, something we haven't seen in a while. If one developer can't make the deal happen, the next one will.
2012 may not mark the end of our troubled housing market, but it may mark the beginning of the long awaited stabilization of house prices and better markets down the road.
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