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New Home Construction Process

This video was done for real estate agents, but I think it’s helpful for you to know some of the information in this video.

If you’re looking to buy a new home, I can help you through this process.  I’ve got over 20 years in the construction, engineering and real estate business.

“New” New Home Inventory ??

The peak for home sales was at 4.5 million units in 2007.  In 2012, there were roughly 2.5 million units available, while we have seen a 10 percent increase in demand.  New home starts this year has run at about 700,000 which is 50% of the normal numbers over the last 50 years (annualized).  In 2013, we may see a 70% jump in new home starts, providing buyers with more choices among resale homes, distressed properties (short sales and foreclosures) and new construction.  Projections say that the total number of homes available will still be about 300,000 below normal (annualized) levels, so we are looking for a seller’s market through 2013.  As to the effect on home prices, we all shall see.

New Home Sales – March 2012

Here’s the latest numbers from the National Association of Home Builders.

Who lives in newly constructed homes?

The National Association of Home Builders obviously spends a lot of time trying to inform their members and help them forecast the months and years ahead as it relates to new homes demand, new homes supply, materials prices, etc.  I think you’ll find this article on new home owners to be helpful to you.  If you want to keep up with other National Association of Home Builder information, just follow their “Eye on Housing” blog.  http://eyeonhousing.wordpress.com/2012/04/12/who-lives-in-new-housing/

New Homes Less Expensive to Maintain?

The National Association of Home Builders has posted a blog about the cost of maintaining a home here:

http://eyeonhousing.wordpress.com/2012/04/04/new-homes-are-less-expensive-to-maintain/

Some of this is just intuitive, because a new home has less items that can go wrong.  It hasn’t had a chance to succumb to weather, water and gravity yet.

In addition, many new homes have better quality energy control features, such as high SEER heating and air conditioning systems, better insulation and better attic ventilation.  While the up-front cost of these new systems is significantly higher than in the past, the operating cost can be much lower.

If you’re a first-time home buyer, take heed of some of the costs in this article, as it can help you budget for the “unexpected” costs of home ownership.