Friday, August 9, 2013

Modular Housing Keeping up with Demand.

Homebuyers looking to purchase a house before prices and interest rates climb higher are filling builders’ sales offices. New houses are springing up around the country, and tract builders and developers are buying more land for new subdivisions.

They are all welcome signs that the slowly recovering housing market is picking up as the US continues to pull out of the recession. More homes are being built than last year, but the pace of the recovery is not accelerating as fast as had been anticipated. According to industry experts, new-home construction will climb at less than half the rate expected earlier this year.

But a combination of factors is creating headwinds for the homebuilding industry: a shortage of construction workers; subcontractors unable to ramp up their operations fast enough; and a shrinking availability of prime building lots. With the exception of prime building lots, modular home builders are the best answer for homebuyers as their factories have plenty of skilled labor and most factories are still far from running at capacity.

Now, some of the large tract builders are limiting the number of houses they offer for sale as they watch prices continue to rise.

In a midyear forecast affirmed the homebuilding market is still in a recovery, but the number of houses that can be built will be limited during the next few years.

For people shopping for a new house, this likely means new-home prices will continue to rise faster than average. The average price of a new home has climbed 24 percent in the past year.

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