Frank Orrico Broker Realty Executives Legacy

09/26/2024

Why buy a house when you can buy a canvas for your dream home? 🏡✨ Homes with potential can be transformed into the perfect space with a little renovation magic. Ready to find your diamond in the rough? Contact me today! 🛠️🔑

09/09/2024

Before you begin your house search, getting preapproved is a game changer! 🏡✨ You'll know what you're working with, be a more attractive buyer, have more room to negotiate, and close faster! Ready to get started? Contact me today!

08/31/2024

Ever wondered what factors contribute to a home's value? 🤔 From location to size, condition, and local market trends, it's a complex equation. Want to delve deeper into understanding what makes a home special and valuable? Reach out for more valuable insights.

08/23/2024

More homes on the marke mean better prices!

While the number of homes for sale varies by local area, nationally we’re up over 36% year-over-year, but still down almost 29% compared to what’s normal.

08/12/2024

Want a simple way to build home equity faster? Try rounding up your monthly mortgage payment! Even a small extra amount can make a big difference over time. Reach out to learn more tips on maximizing your investment!

08/09/2024

Are you planning to buy a new home? As your real estate agent, I can walk you through all the things that help determine your mortgage and your down payment. Understanding these key factors can help you make informed decisions and secure the best mortgage for your situation.

08/03/2024

Thinking about investing in real estate? 🏡📈 It's always a smart move to grow your wealth and secure your future! Let's explore your options and find the perfect investment opportunity today. Reach out to get started! 💬📞

06/20/2024

Thinking about selling?

Real estate agents identify the red flags that can scare off potential homebuyers, ruining a potential sale.

06/13/2024

Homebuilders Aren’t Overbuilding, They’re Catching Up

You may have heard that there are more brand-new homes available right now than the norm. Today, about one in three homes on the market are newly built. And if you’re wondering what that means for the housing market and for your own move, here’s what you need to know.

Why This Isn’t Like 2008
People remember what happened to the housing market back in 2008. And one of the factors that contributed to that crash was that there were too many homes for sale. While only part of the oversupply back then came from builders, the lasting impact is that some people still feel uneasy when they hear new home construction has ramped up.

Even though the supply of new homes has grown this year, the data shows there’s no need to worry. Builders aren’t overbuilding, they’re just catching up.

The graph below uses data from the Census to show the number of new houses built over the last 52 years. Following the crash in 2008, there was a long period of underbuilding (shown in red). And it wasn’t until recently that we finally met the long-term average for how many homes are built in a typical year. No Caption Received

This shows, that even with the increase in new builds we’ve seen lately, there won’t suddenly be an oversupply of homes for sale. There’s too much of a gap to make up after over a decade of underbuilding. And if you’re still worried builders are overdoing it, here’s something else that should be reassuring.

New Home Construction May Be at Its Peak for the Year
The latest data from the Census on housing starts (homes where builders just broke ground) and permits (homes where builders can start development soon) shows builders are slowing down their pace right now. Why is that?

They’re responding to still high mortgage rates and how those are impacting buyer demand. Basically, they’re pulling back appropriately in response to what’s happening in the market. As an article from HousingWire explains:

“Even with a massive housing shortage across the nation, homebuilders are completing their pipelines and not seeking as many permits to construct new single-family houses.”
Builders remember what happened when they overbuilt in the crash, and they’re looking to avoid a repeat of that. So, they’re being mindful and pulling back a bit.

You May Have More Options Now Versus Later
If you’re considering a newly built home, here’s how this impacts you. With builders seeking fewer permits and not breaking ground on as many new homes, we may be at the peak of new home construction for the year. This doesn’t mean new home construction is screeching to a stop – just that the pace is slowing down now, and that’ll impact what comes to market later this year. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Given the recent declines in housing starts, home completions will steadily show declines in about six months.”
So, if you’re ready and able to buy now, you may find you’ll have more newly built options to choose from now versus later on. This may be enough reason to kick off your search.

Just be sure to work with a local real estate agent you know and trust throughout the process. An agent will have valuable insight into builder reputations and other key factors specific to your market. And if there isn’t much new construction near you, they’ll be able to point you toward a nearby area where there is.

Bottom Line
While it’s true new home construction is a bigger segment of the market than the norm, that’s not a bad thing. Builders aren’t overbuilding, and they’re responding to market signals to avoid repeating the mistakes that were made in 2008.



If you want to buy now while new home options may be at their peak, let’s connect.

06/06/2024

Thinking of selling your home on your own? Homes sold with an agent typically fetch significantly higher prices than FSBOs. Let's work together to maximize your home's value!

05/25/2024

Understanding mortgage terms is almost as important as understanding the term of your mortgage. But don't stress, I'm here to help you understand it all. Just leave me a comment with any questions you might have!

05/14/2024

Real estate terms can be confusing, but I'm here to help! We can navigate your home-buying process together. Just send me a message with your questions, and let's get started!