If you’ve been searching for a house to buy, you’ve likely heard that inventory is low right now. There are fewer homes for sale than normal. That means, more competition, higher prices, and a tougher time finding a home that fits your needs and lifestyle. That can be frustrating, but there’s good news on the horizon.
That’s because, according to the U.S. Census Bureau and the Department of Housing and Urban Development, the number of new homes being built is increasing. In fact, October data shows the number of homes that began construction during the month was 14.2 percent higher than it was a year earlier and 4.9 percent higher than the month before.
Additionally, the report found building permits are now at a 13-year high. And, since building permits are a good indicator of future housing starts, that’s an encouraging sign that the gains will continue. So what’s this mean for homebuyers? Well, it’s an indication that new home construction is trying to keep up with demand – which should help add inventory, bring balance, moderate prices, and offer buyers more choices when looking for a home to buy. (source)