Thursday, May 19, 2016

Finally, New Home Construction Can't Keep Pace with Demand

The number of new homes built in April was down from this time last year, but the number in the works was up notably, and yet both pieces of information may not make much difference in the availability of new houses, particularly to new and first time home buyers, according to the National Association of Realtors.

The number of houses-to-be might not be enough to fulfill pent-up demand, rising prices, and bidding wars for houses across the country is based on the U.S.

Department of Commerce’s latest residential construction report, which shows that the total number of newly built homes in April dropped 5.8 percent (to 72,600) from a year ago and 6.4 percent from March. Those numbers, however, were not adjusted to account for seasonal fluctuations.

On the other side of these numbers is the fact that there were close to 1 million new homes under construction in April, which is a 15.7 percent uptick compared to a year ago and a 2.5 percent bump compared to March.

The news coincides with numbers released by the U.S. Census Bureau and HUD on Tuesday, which found that home building in the U.S. picked up again in April after reaching the slowest pace in seven months. The numbers came from the jointly released new residential construction statistics for April 2016, which showed that privately-owned housing starts rose 6.6 percent from March's rate of 1,099,000 to 1,172,000 in April at a seasonally adjusted annual rate.

However, year-over-year, housing starts are down 1.7 percent from last April's rate of 1,192,000.

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