Spring is officially here and thousands of buyers are all encountering the same problem when it comes to house hunting
: extremely low
inventory. The construction of new homes is down roughly 0.6% from January, yet has increased by roughly 0.5% since February of 2017.
The housing market is off balance to say the least. In a "usual" market, one out of seven homes sold is considered "new". In the current market, one out of ten homes sold is new.
Related: "Buying a Home Site Unseen: 4 Things You Should Know"
The bottom line: there just aren't enough affordable homes to go around. With the current median price of newly constructed homes hiked up to $326,800, almost 0.6% from the previous month and 9.7% from last year, many buyers are looking for
existing homes at a median price point of $241,700. New construction will cost buyers a pretty penny due to amplified land values, intense labor expenses and the cost of building materials. Buyers hoping to purchase
a new construction
home will have to fork over even more cash should they wish to include the latest design fashions, top notch finishes and high end appliances.
Of the newly constructed homes purchased in February, roughly 13% were priced below $199,999 while the majority, or 58%, ran between $200,000 and $399,999. Twelve percent were priced between $400K and $499,999 and seventeen percent ran $500K and
The South was responsible for the sale of most new homes, roughly 338,000, in February at a nine percent increase from January and 0.6% hike from February of 2017. The West came in second, roughly 164,000 new home sales, at a 17.6% monthly decline
and 3.1% annual increase. In third place, the Midwest was down 3.7% from January at roughly 79,000 home sales and 8.1% from the previous January. The Northeast experienced a 19>4% increase from the prior month at a meager 37,000 home sales.
Here's the deal: sellers
are in the driver's seat due to current market conditions.