In today’s real estate market, many homebuyers are wondering where to find houses for sale. It truly is a real estate dilemma. Our team at Wenzel Select Properties sees an increase of homebuyers, but contractors building new homes are not keeping up with the real estate market.
According to Apartment List, the number of contractors who requested new housing permits issued in 1990 to 2005 increased significantly. In 1990 there were 1.2 million building permits issued compared to 2.16 million in 2005. From 1990 to 2005, the number of single-family home building permits issued more than doubled, while the number of multi-family permits grew by 49 percent.
When the housing market crashed, the number of new home building permits decreased to its lowest level in 2009 (see below):
Since then, the supply and demand have been out of balance when it comes to new home construction. According to the same report, construction of single-family homes has recovered much more slowly. The number of single-family home building permits in 2018 was barely half the number in 2005, with a limited selection for homebuyers.
Why is New Home Building Important for Homebuyers?
As the population in the United States increases, there is also an increase in the need for new homes. Today, new home builders are not keeping up with the increase in the nation’s population. The report also states that the total number of residential homes permitted in 2018 was roughly the same as the number in 1994, and the country’s population was 20 percent less than it is today.
The decrease in home building coupled with the steadily increasing population in the United States means there is now a selling opportunity for homeowners willing to list their homes. According to a recent survey by realtor.com, nearly 60 percent of homebuyers are considering purchasing a home that needs renovations. With the rising home prices and limited inventory, new homebuyers are willing to spend more than $20,000 on renovations. While home renovations can be costly, home shoppers are optimistic they will get a positive return on their investment.
Are You Interested in Selling Your Home?
If you are considering selling your home, now is a great time to get a positive return on your investment in a market with high demand. Contact a real estate broker at Wenzel Select Properties today to determine the specific options available for you and your family. Call (630) 430-4790. Wenzel Select Properties is located at 4941 Main Street, Downers Grove, Illinois 60515.