For-sale new construction is back – and it’s in high demand. The rebound comes with an improving economy, low supply of existing homes, and buyers’ thirst for contemporary floor plans, upscale amenities and custom finishes. At @properties, we’ve been keeping a close eye on the new construction market, and the outlook is increasingly positive. Let’s take a look:
Builder Confidence: In September, builder confidence rose for the fourth consecutive month, reaching its highest level in nine years. Homebuilders are increasingly bullish about where the new construction market is heading. The Commerce Department recently reported that new-home sales rose 18 percent in August, the largest gain since May 2008. Housing starts were 8 percent higher than a year ago.
Inventory: In Chicagoland, new construction inventory rose 16.6 percent in August from the year before, according to data from BrokerMetrics LLC. The increase is even more dramatic in the city of Chicago, where the supply of new homes for sale jumped 76.9 percent during that same period. This is welcome news for buyers, who have had very few options for buying new due to limited inventory.
Home Prices: Pricing for new homes continues to rise amid pent-up demand. In fact, Chicago-area new-home prices have experienced double-digit gains for the last four months, according to BrokerMetrics.
So what’s ahead? With a number of new developments underway or in the pipeline in both Chicagoland and Southwest Michigan, we expect the new construction market to continue to gain strength. Here at @properties, we’re keeping busy representing some of the first new large-scale condominium developments to hit the market in several years, including 4 East Elm in the Gold Coast and Webster Square Condominiums in Lincoln Park. We’re also marketing single-family home developments in the surrounding suburbs and Southwest Michigan.
If you’re interested in learning more about new construction developments, be sure to visit the Developments section on the @properties website.