The demand for brand new homes in the United States is strong, and is getting stronger. To be sure, builder sentiment, which is measured by the National Association of Home Builders’ survey, is considered positive when the results are 50 points or above – the index currently sits at 68 points, signifying that homebuilders’ confidence has risen. The demand for brand new homes in the United States is strong, and is getting stronger. To be sure, builder sentiment, which is measured by the National Association of Home Builders’ survey, is considered positive when the results are 50 points or above – the index currently sits at 68 points, signifying that homebuilders’ confidence has risen.
Factors that Are Driving Homebuilder Sentiment and Housing Demand
One of the factors that may be positively affecting homebuilder confidence has to do with deregulations – and promises of deregulation – thanks to the current Administration. CNBC reports that builders experienced a major win in terms of regulations dealing with building and obtaining water permits, and that builders are looking forward to the future.
Of course, another thing that is driving homebuilder confidence is the fact that there is rising demand in the new-home market. The new demand in the new-home market – with a large increase in individuals and families desiring never-before-lived-in-abodes – is likely thanks to the strong job market and current economic state (GDP growth), the fact that mortgage rates continue to remain low, and the fact that confidence is growing amongst homebuyers.
Here are some of the reasons that the demand for brand new homes is currently on the rise, and why now may be the ideal time for you to start building, too:
- Mortgage interest rates are low. Buying a home when interest rates are high means that over time, you will end up paying more back on your loan than you would have had you bought when interest rates were low. For a 30-year fixed loan, Bankrate.com reports that the interest rate for September is just 3.95 percent, a dip from July 2017 when the rate was 4.13 percent.
- Home prices are reasonable. Another reason to think about buying brand new today is that prices, while not at the lowest they have ever been, are very reasonable. However, home prices are currently on the rise, so if you’re thinking about buying new, doing so now before prices surge out of your reach is recommended.
- Buying a home is a smart investment. Of all of the types of investments out there, buying a home is one of the best you can pursue, and one of the least risky. Investing in real estate is one of the very best ways that you can ensure your financial future. Furthermore, you already know that investing takes time – houses (and other investment types) don’t increase in value overnight. If you wait too long, you may look back to now and regret that you didn’t act when you had the opportunity to.
Other factors you should consider include the costs of renting vs. owning, your current budget, where you want to live and demand in that area, your debt-to-income ratio, how much cash you have available for a down payment (and how this may affect your interest rate), and your credit score (which will also have an effect on your interest rate).
Turning Your Dreams Into Reality With Hayden Homes
Nothing beats buying and living in a brand new home that you can call your own. With homebuilder confidence and new home demand rising, now may be the perfect time to buy the home of your dreams. At Hayden Homes, we help buyers find their dream homes in Oregon, Washington, and Idaho, and our new homes are ready to move into today! To learn more about buying one of our high quality, affordable homes, contact us to find out how we can help. We look forward to working with you.