Spring has always been perceived as the start
of the housing season, but this March in some neighborhoods in the
city and some suburbs possessed a whole new kind of March-madness. Homes sales all around were up from a year
ago in nearly all areas of the city but they could likely have gone
higher. Some areas saw a slow down since
January of this year. The market is
different and as the lack of inventory in the conventional market continues to
raise prices and create multiple offers, which seems to be creating the need
again for new construction.
economist for the National Association of Realtors, Lawrence Yun said, "Only
new home construction can genuinely help relieve the inventory shortage, and
housing starts need to rise at least 50 percent from current levels. Most local home builders are small businesses
and simply don't have access to capital on Wall Street. Clearer regulatory
rules, applied to construction loans for smaller community banks and credit
unions, could bring many small-sized builders back into the market."
are obviously quite low in the market, but builders on the other hand are
struggling with labor and land shortages, and also higher material costs.
seems to think that the market is leveling off and will continue to move at a
slower pace for a while. He noticed that
there has been a sudden surge of mortgage application though, conveniently as
the interest rate dropped as a result of the crisis in Cyprus.
Walters, chief economist for Quicken Loans says that the movement in
applications is only a small piece of the big picture, but the surge is a good
indication of more buyers entering the market to take advantage of the low
interest rates. Even though rates will
be increasing, they are still low and the timing is ripe to buy.