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New Build Home Update

New Build Home Update

New Build Home Update

Now is the Best Time in 2021 to Buy a New Build Home…and Here’s Why

After a record year of low new build home inventory, we’re finally starting to see positive change in the new home build market. Here’s why:

Interest Rates

Interest rates have continued to stay near historically low levels. Most economists are predicting rates will increase in the coming months as the Fed tapers off their mortgage-bond purchases due to the improving economy and rising inflation. In fact, as you see in the graph below, we’re already seeing a slight increase in rates:

Lumber

We all heard the stories of the historically high lumber prices we saw in 2021. Happily, lumber prices have finally begun to normalize! Earlier this year, lumber prices were more than triple their usual cost – bringing prices of new homes to unheard highs. This is no longer a contributing factor.

2021 Lumber Prices - Price per Thousand Board Feet

2021 Lumber Prices – Price per Thousand Board Feet

Inventory

The number of homes available for purchase in the Austin market is the highest it’s been all year. Those wanting a new build home will find many more options than were available earlier this year.

2021 Austin MSA  Number of Active Listings on the Market

The Laurie Flood Team has helped dozens of our clients purchase a new build home. We KNOW the new build market, which means you benefit from our past experiences with a variety of builders. And in a high-pressure sales environment, it’s important to have someone on your side. Contact the Laurie Flood Team to find your new dream home today!