December 07, 2023

2024 Real Estate Predictions | New Home Building

25 minutes

Will new construction impact the housing market in 2024? The short answer is yes! New construction will continue to drive many aspects of the housing market next year. From creating much-needed inventory to having some of the best mortgage rates around, you can't ignore this segment of the market. In 2023, 30% of sales were new construction!

Welcome back to America's #1 Daily Podcast, featuring America's #1 Real Estate Coaches and Top EXP Realty Sponsors in the World, Tim and Julie Harris. Ready to become an EXP Realty Agent and join Tim and Julie Harris? https://whylibertas.com/harris or text Tim directly 512-758-0206

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How this will impact YOU in 2024:

1. You need more homes to show your highly qualified, highly motivated buyer clients. Many of those clients are also your sellers or would-be sellers. Knowing about new construction will allow you to sell more homes in less time, not to mention the repeat and referral business down the road because you solved the problem of finding your clients the right home.

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2. Builders, especially the large ones offer better mortgage interest rates, which means lower payments for a new home. No repairs and a smaller payment make most buyers pretty happy. New construction virtually sells itself.

3. When you have builder relationships, those can lead to many, many more opportunities for you. Refer to our podcast about how to make money with New Constructions. There are at least 7 different ways.

Quick facts from the US Census regarding New Construction

Keep in mind that we currently have 560,000 resale homes on the market as active listings. Inventory is inching up, week by week, but let's see what's happening in the world of new builds.

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Those new projects are valued at more than $154 billion, or an average valuation of $289,339.57 per permit. Note: This valuation is an estimate of the cost to BUILD the home for the builder, not including the purchase price of the land, and is not the same as the market value of the home.

60% of those permits are for single-family homes, and 40% are for multi-family homes.

Greater Houston, Dallas-Fort Worth, Atlanta, Phoenix, and Charlotte lead the nation in single-family home permits issued in 2023.

The South leads the nation in both the number and total valuation of single-unit permits issued so far in 2023, followed by the West and Midwest regions.

Orlando, Austin, Nashville, Tampa, Raleigh, Riverside CA, Greater NYC, Jacksonville, FL, Washington DC, and LA are all on the list of top 20 cities for residential building permits. So chances are, there's new construction near you.

You can find SOME new construction in your MLS but don't count on that as your only resource. Use NewHomeSource.com and search by zip code to find out what's happening in your market. You can also network with your local zoning commission, architectural review board, etc.

NOT Knowing about new construction can mean that you'll do 30% less business next year because it's 30% of what's happening out there!

Inflation. 2024 Should be a year of normalized, moderate inflation, but won't be a market-wrecking factor as was once predicted.

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By Tim & Julie Harris - Real Estate Success Coaches

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