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The number of building permits issued for single-family homes is the best indicator of how many newly built homes will begin to come to market over the next few months. According to theĀ latestĀ U.S. Census BureauĀ andĀ U.S. Department of Housing & Urban DevelopmentĀ Residential Construction Report,Ā the number of building permits issued in January was 1,551,000. This is a 9.2% increase from December.How will this impact buyers? New inventory means more options.Ā Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explained how this is good news for the housing market ā especially for those looking to buy:
āMore construction will mean more housing inventory for consumers in the later months of this yearā¦Spring months could still be quite tough for buyers since it takes time to convert housing starts into actual housing completions.
āHow will this impact sellers? More inventory means more competition. Yun continues to say: āAs trade-up buyers move into these newly completed homes in the near future, their existing homes will be released onto the market.āToday, because of the tremendous lack of inventory, a seller can potentially anticipate:A great sale price on their house as buyers engage in potential bidding wars.A quick sale as buyers have little inventory to choose from.Fewer hassles as buyers want to smoothly secure a contract.
Bottom Line If youāre considering selling your house, youāll want to list sooner rather than later. This way, youāll get ahead of this new competition coming to market and ensure the most attention toward your listing and the best price for your house.
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