New Home Construction is Booming
The real estate market in Washington is growing quickly, with price of new homes, as well as apartment rental prices, steadily increasing. Although the trend has slowed a bit as is to be expected late in the year, the overall cost of homes in the Washington and Oregon area have continued to increase.
While this is excellent news for homeowners who are interested in selling, relocating or upgrading their homes, this has also caused difficulty for home buyers and renters. Often, new homeowners are finding themselves priced out of the state; increasing costs combined with a low inventory of homes has made it challenging for buyers seeking affordable places to live.
The forecasts for growth are based on a number of factors, including the overall economic growth, the employment growth and the availability of land to construct upon. Taxes, available credits, and other economic factors are also considered. This data is analyzed and compared with historical trends to predict where the housing market will go in the near future, and how best prospective home buyers and builders can take advantage of it.
Home costs in Washington are increasing faster than in any other state, with no end in sight. Prices have finally surpassed the pre-recession costs that they boasted before 2008, leaving Seattle topping the home growth market for the country and firmly placing Washington in the top five most expensive states in the nation. The median home price in Washington now sits at around $307,658 as various counties have continued to report massive growth.
The past year has also seen steady growth in the Vancouver housing market specifically, with the trend expected to continue through 2017. Since September 2015, the price of new homes has risen approximately 5-7 percent and is projected to rise another 5.9 percent over the next year.
The upward trend is partially caused by increased demand as millennials, bolstered by the improving economy, find higher-paying jobs and seek to move out of their parents’ homes.
Another cause is the increase in ownership of second homes. Many people are seeking to buy vacation homes as well as retirement properties for themselves, leaving more houses owned by fewer and fewer people.
With many new buyers looking to secure their own property, builders struggle to keep up. As the demand increases, and the supply does not, the costs of homes continues to increase. A property boom like this one has not been seen in Washington in many years.
With the upward swing in home prices, construction has also increased. This past October, new home construction skyrocketed by 25.5% as a shortage of available property boosted the need to develop new properties. The construction of apartment buildings is also on the rise, having increased by 75% over the course of the year.
Purchasing a home in this type of market carries risks with it as well. With property values high, new home buyers are faced with expensive payments; the possibility exists that those property values will decrease, leaving new buyers in bad shape as they struggle to pay the expensive costs of their new homes.
Even as thousands of new jobs appear and pay increases, finding homes continues to become difficult for many people living in the Washington area. Many renters also struggle to afford dramatically increased rents.
Among the people who can take advantage of this type of market are new home builders. Purchasing a home during a boom can present too many risks and headaches for cautious buyers; having a home custom built may be the better choice. As the skyrocketing housing rates are due to high demand and low supply, purchasing property and having a custom home constructed may be the best option.
As homebuilding rises, quickly securing a building location and permit should be a priority as the property may not be available later on due to the high demand. As the cost of homes increases, building materials also become more expensive. Since economists have forecasted that the growth will continue, building soon before the costs increase even further is a wise decision. New home builders who wait may find themselves priced out of their dream areas; that’s why seizing opportunities as they arise and taking advantage of the bustling economy is imperative at this time.
Listings for properties are being sold quickly; if you wish to find a property for yourself or your family, having a home constructed is an excellent choice. Once you have done so, finding a reputable home builder is essential as well. It is important to get the maximum value for your expensive property and so you should diligently research who exactly will be building your home for you.
In the Vancouver, Tri-Cities, and surrounding areas in Washington, New Tradition Homes is an excellent choice. A custom home will allow you to construct your house to your exact specifications; you decide on < a href="http://www.newtraditionhomes.com/build-on-your-lot">every detail of your new home. You can work from custom floor plans your new home builders will have available and you have the added benefits of having a warranty on your new home.
Learn more about the process here.