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Are New Homes Going to Be Available to Buy This Year?
Tim Smith
Tim Smith’s name is synonymous with the coastal Orange County real estate market, where his well-established reputation and unmatched market knowled...
Tim Smith’s name is synonymous with the coastal Orange County real estate market, where his well-established reputation and unmatched market knowled...
In today’s economy, everyone seems to be searching for signs that a recovery is coming soon. Many experts agree that it may actually already be in motion or will be starting by the 3rd quarter of this year. With the housing market positioned to lead the way out of this recession, builder confidence might be a bright spark that gets the recovery fire started. The construction of new homes coming right around the corner is a huge part of that effort, and it may drive your opportunity to make a move this year.
According to the National Association of Home Builders (NAHB):
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New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April.
In addition, builder confidence is also rising, opening up opportunity for newly constructed homes in the market. The NAHB also notes:
In a sign that housing stands poised to lead a post-pandemic economic recovery, builder confidence in the market for newly-built single-family homes jumped 21 points to 58 in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Any reading above 50 indicates a positive market.
As noted above, this upward trend is supported by builders reporting an increase in demand for single-family homes in suburban neighborhoods with lower-density populations, a result of the COVID-19 health crisis.
Moreover, the most recent Monthly New Residential Construction Report from the U.S. Census indicates that authorized building permits for new residential construction increased by 14.4% month-over-month from April to May, and housing starts were also up 4.3% over the same time period. (See graph below):
Although housing permits and starts are both considerably lower than they were at this time last year, indicating the new construction market is still working on building its way back up, the trends are moving in the right direction when it comes to having an impact on the U.S. economy. They’re also poised to create the much-needed new homes for Americans to purchase in a time when inventory is so scarce.
Dean Mon, Chairman of the NAHB notes:
As the nation reopens, housing is well-positioned to lead the economy forward…Inventory is tight, mortgage applications are increasing, interest rates are low and confidence is rising. And buyer traffic more than doubled in one month even as builders report growing online and phone inquiries stemming from the outbreak.
The gap between homes to buy and the high demand from purchasers may be narrowed by new construction, and the data shows that these homes are on their way into the housing market.
So, if you’ve debated whether or not to sell your house this year because you’re not sure where to move, a newly-built home – designed to your specific liking – may be your answer.
Bottom Line
With new residential construction right around the corner, you can feel confident about selling your house and having a place to move into.
Maybe it’s time to finally design the home you’ve always wanted.
Let’s connect and discuss selling your house while demand from eager buyers is high.
NEW CONSTRUCTION
For Sale with The Smith Group
*Completed 2019-2021
2201 Bayside Drive
Occupying one of the best locations on the Newport Harbor with ocean, channel, and sunset views, this highly-anticipated Brandon Architects estate is an achievement of style and comprehensive design with 4 meticulously-calculated levels.
2928 Ocean Blvd
Designed by renowned architect, Chris Light, built over 3.5 years by Van Cleve Construction, and finished by Slayman Design, 2928 Ocean Blvd is every bit the modern masterpiece that its pedigree implies. Positioned on a premier corner lot, the newly constructed residence was manipulated in such a way that nearly every room enjoys striking ocean views.
239 Carnation Avenue
LIVE AUCTION – SATURDAY, AUG 1, 2020. DETAILS TO FOLLOW. ACCEPTING PRE-AUCTION OFFERS FOR REVIEW. Spectators await with bated breath the Summer 2020 completion of 239 Carnation, a custom new construction residence in a class of its own resulting from its panoramic harbor, ocean, city light and Catalina Island views as well as its commitment to luxury and lifestyle alignment.
1627 Bayadere Terrace
'Above it all’ on the prestigious front row of Irvine Terrace, 1627 Bayadere delivers sweeping beach, channel, sunset and city light views from a stunning 7,500+ SF new-construction custom estate (appx. 6,723 SF livable and 813 SF garage) designed by William Guidero, built-to-perfection by Devco Homes, and exquisitely appointed by Denise Morrison Interiors.
7 Beach View Avenue
Take in the uninterrupted sandy-beach and white-water ocean views of Headlands Cove, the iconic landmark of Dana Point. An immaculate custom home constructed by master builder Richard Doan and designed by noted architect Mark Radford.
21 White Water Lane
Destined for the upper echelon of luxury real estate is this impeccably conceived, panoramic ocean-view estate designed by renowned Oatman Architects, within the guard-gated enclave of The Strand at Headlands. Slated for completion at the end of 2020 with celebrated builder, Winkle Custom Homes, at the helm and DeJager Design commissioned for visionary interiors, the estate is poised to appreciate the prestige that accompanies this sought-after team.
218 Goldenrod Avenue
Set on an extra-wide corner lot just off coveted Ocean Boulevard is this yet-to-be-completed contemporary residence with expansive views across the Newport Harbor to The Wedge, Catalina Island and beyond.
3904 Channel Place
One of 3 exquisite new-construction residences, each with private dock (fitting an appx. 40’ boat), by highly sought-after builder, Patterson Custom Homes, on the waterfront of Newport Island. Designed by Brandon Architects with interior design plans by Denise Morrison, this 3-bedroom, 4.5 bathroom estate is destined for greatness upon its completion in 2020.
504 Hazel Drive
Moments from the beach and CdM’s village, this new custom contemporary masterpiece elevates preferred living. Designed by Brandon Architects, the distinctive home presents appx 40' of frontage overlooking Buck Gully with inspiring canyon, creek and ocean views.
668 Buena Vista Way
Presenting a prime location in Laguna’s enviable Temple Hills neighborhood, this brand-new soft-contemporary estate offers views most can only dream of. From Catalina to crashing waves, panoramic ocean views embrace the downtown village, Main Beach, coastal canyons and spectacular sunsets.
2507 Alta Vista Drive
The defining elements of soft contemporary design are found in their finest forms at this newly completed four bedroom residence located on a single-loaded street within the desirable, central enclave of East Bluff.
419 29th Street
This light and bright work-live residence designed by Brandon Architects is located in the heart of the peninsula with the new and hip Lido Marina Village just outside its doorstep. Surrounded by boutique shops and restaurants, the home enjoys endless entertainment and the best of its vibrant coastal-urban setting.
5922 Grandview Avenue
Proudly elevated above the street with a striking stacked-stone and siding façade, this newly constructed masterpiece on approx. ¾-acres sets the bar for luxurious living within a highly desirable community of custom estates.
BUILD YOUR DREAM HOME
Land for Sale with The Smith Group
20 Coastline Drive
Exclusive opportunity to build your dream custom estate at this rare, nearly 34,000 square foot homesite in the coveted enclave of Crystal Cove.
31641 Peppertree Bend
360-degree views of the ocean, mountains, hillsides, city lights, and the historic Mission San Juan Capistrano abound from this approximate 6.78-acre homesite located on upper Peppertree Bend.
5 Oceanfront Lane
Located in the esteemed guard gated community of The Strand at Headlands, this build-ready parcel sets the stage for the home of your dreams with breathtaking views of the sunsets, Catalina Island and the white water views off the Headlands of Dana Point.
13052 Nelson Street
Vacant Lot with old variance From the city of Garden Grove. At one point - over 10 years ago, it was approved For A 4 Bedroom, 2.5 Bath home.
*The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Smith Group, Coldwell Banker Realty & Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The Smith Group, Coldwell Banker Realty & Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.