Will New Homes Be Available For Purchase this Year?

Published:
July 29, 2020
Last updated:
April 6, 2022
Post cover image
In This Article

As the country works through the coronavirus pandemic and its effect on the economy, how will the real estate market fare? More specifically, will there be more new home construction this year and next? This article will attempt to answer that question.

After dealing with the recent health crisis, Americans are ready to move on and go back to some type of normalcy. As the economy finally starts to reopen slowly, many wonder if it will ever go back to where it was pre-coronavirus, and if so, when.

Strong Interest in Home Buying

According to a recent Case-Shiller’s National Home Price Index, home prices in November 2021 slowed due to rising mortgage rates and higher home prices. This environment has been especially challenging for first-time and moderate-income buyers and investors who may be hesitant about buying in the middle of a hot housing market with the potential for home values to cool at some point.

At the same time, new home sales saw healthy gains in November, spurred on by strong buyer demand, tight existing home inventory, and the forecast of higher mortgage interest rates. Sales of newly constructed single-family homes in November increased 12.4% from the month before. That said, new home sales were down 14% year-over-year, according to the US Department of Housing and Urban Development and the Census Bureau.

View Current Mortgage Rates

Increase in New Home Builder Confidence

New home builder confidence is also increasing, which may result in a slew of newly constructed homes available on the market. More specifically, builder confidence in the realm of newly-built single-family homes reached a level of 84 in December 2021, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Reading over 50 points to a positive market.

There has been an increase in demand among buyers for single-family homes in suburban areas with more sparse populations. They’ve realized that being cooped up in a condo or not having much outdoor space to roam free a safe distance away from others is a real nuisance. As such, builder confidence has increased accordingly.

Building permits are also increasing, providing yet another sign that build confidence is along with an increase in buyer demand. According to the US Census’ Monthly New Residential Construction Report, building permits for new home construction jumped by 6% from December 2020 to December 2021

Will Markets in WA, ID, OR, and CO Continue to Remain Strong in 2022?

It’s tough to tell what the markets in Washington, Idaho, Colorado, and Oregon will do over the next year, but up until now, they’ve done very well. In fact, these markets are still considered very hot.

Washington

The average home price in Washington currently stands at $573,071. That’s a 23.2% increase from the same time last year. Zillow characterizes the housing market in Washington as “very hot” right now, and perhaps things will remain that way going forward with renewed homebuyer demand.

Oregon

In the state of Oregon, the average home price is now $486,642 after having increased 19.7% from the same month in 2021. According to Zillow, Oregon’s real estate market is considered warm.

Idaho

The average home price in Idaho is $451,830. That marks a 33.4% increase from the same time last year, making this particular housing market a very hot one.

Colorado

Colorado’s average home price is currently $536,839. Prices have increased by 22.6% over the past 12 months. Zillow characterizes the market as very healthy.

A Promising New Trend?

Considering the dire housing inventory situation across the country, new housing construction will provide some much-needed relief and access to homes for buyers on the prowl for a new home.

Mortgage applications are also on the rise. That, coupled with low interest rates and increased builder confidence paints the picture of a bright future for real estate.

Get an Instant Mortgage Rate Quote Today

Ready to Apply For a Mortgage?

Are you considering buying a home this year? Sammamish Mortgage can help. We are a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have any questions or are ready to start the mortgage application process.

Other Blogs You May Like
Medical Debt Reporting Changes Coming
May 18, 2022
5 min read
Medical Debt Reporting Changes Coming
What can you do about paid medical debt on your credit report? In the past, the answer was:...
With the Economy Improving, Is It Time to Buy a Home?
May 17, 2022
5 min read
With the Economy Improving, Is It Time to Buy a Home?
Those who have put off a home purchase over recent months now wonder whether the stars are falling...
Show 186 more posts
from this category

Connect with America’s Lending Experts today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.