Over the past year we’ve seen a decline in inventory across the Cape Ann marketplace and throughout much of the state. This has lead to increased price and buyer demand, since there isn’t enough homes on the market to satiate demand.
It seems developers have been taking note of this and have been hard at work. The United States Commerce Department has recently released a report that shows developers are moving the quickest they have in eight years to bring new inventory to market place. With mortgage rates still at low levels and consistent demand, time is of the essence to create quality supply.
“A fresh supply of new homes will therefore reach the market in upcoming months to help relieve the inventory tightness,” says Lawrence Yun, the chief economist for the National Association of REALTORS®. “There is no need to worry about an oversupply. Even more production would be welcomed.”
Recent reports indicate that single family home inventory has been surging up 12.8% month over month with numbers adjusted to a seasonally annual rate of 782,000 units. This is great news for buyers who may have been frustrated with a lack of inventory.
“Our builders are reporting more confidence in the market, and are stepping up production of single-family homes as a result,” says NAHB Chairman Tom Woods. “However, builders are still reporting problems accessing land and labor.”
“This month’s drop in the more volatile multifamily side is a return to trend after an unusually high June,” says NAHB Chief Economist David Crowe. “While multifamily production has fully recovered from the downturn, single-family starts are improving at a slow and sometimes intermittent rate as consumer confidence gradually rebounds. Continued job and economic growth will keep single-family housing moving forward.”