Despite the unknowing future that unfolded over a year ago with the COVID-19 pandemic, the real estate market saw an interesting uptick in trends. From people ditching their city apartments and moving into larger properties and family homes in suburban areas – to growing investor confidence in the market – there was a lot of positive movement in this sector.
Now with a new year underway, vaccine distribution moving at a fast pace and party changes, we’re already seeing this confidence in housing continue to push forward. In fact, when it comes to new construction of properties, it has hit the highest numbers seen yet in this decade.
According to reports, from the U.S. Census Bureau, in the month of December alone, there was a 5.8% increase in home builders starting new construction projects over just the month prior.
New reports out just this week from the Commerce Department also show that as of March 1, 2021, construction spending again jumped in January another 1.7 percent to reach $1.521 trillion.
Other factors driving this growth have been attributed to the fact that more people are looking to build one-family homes today where they can maintain safe social distancing and still enjoy time with family and friends.
Lower interest rates have also changed the minds of many who perhaps were not financially ready before to apply for home mortgage loans and are perhaps now having the added flexibility of working remotely so settling in a home in the suburbs makes more sense.
Many regional markets are also seeing a dip in the available inventory of single-family homes and this is creating an incentive for investors and home builders to keep up the momentum with new construction builds.
At Sachem Lending we’re dedicated to providing the support and services needed to get new construction projects up and running. Our innovative financing solutions help you to quickly close without any upfront fees. Fill out our loan application or call to speak to an agent today!