One Reason Home Prices Will Keep Rising

There are insufficient homes being built to relieve the shortage of housing inventory that permeates the country.

The inventory of newly constructed homes is essentially at a 50-year low. Yes, the country over-built during the housing bubble. But now demand for homes is outstripping supply and prices rose significantly in all parts of the country last year as a result.

It takes about 6 months to go from housing starts to housing completion and ready for sale status for a single-family home. Big builders can do it quicker on spec homes and you’ll see Flagstaff builders with build-ready lots offering to get home buyers into their new homes within four months . Owner-initiated custom construction takes more than twice as long to complete.

For advice about buying a new home in Flagstaff, contact The Elite Team at RE/MAX Peak Properties.

Blog from the National Association of Realtors®: Latest Housing Starts Data.

Graph of housing starts 1990 to Jan 17 2014

CoreLogic asks if Poor Construction Hiring is New Normal

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