The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the following months. It’s considered a leading indicator. Every month, the latest U.S. Census Bureau and U.S. Department of Housing & Urban Development release the Residential Sales Report which provides the number of building permits issued. This is a great indicator for understanding what’s happening nationally. However, locally we need to look at local reports. If you’re interested in those reports, let us know and we’ll get you the information.

 

How does a change in new homes impact buyers? Building new homes adds inventory to the market. That means there are more options to choose from and increases your negotiating power. If more homes are built than the net number of buyers coming to Denver Metro, then that adds to the total supply and puts downward pressure on prices. However, if we have more people moving to Denver than new housing units being built, then our supply gets tight and prices go up!

 

How do new builds impact sellers? More inventory means more competition because buyers have more options. This has an even greater impact on your appreciation if you live near a new build community! Buyers love to choose their own finishes, so unless they’re getting a deal on your resale home, they’ll typically opt for a new build if they have the choice.

 

While we are still in a seller’s market, a lack of inventory for a seller means there will be:

  1. A great price on their home as buyers outbid each other for it.
  2. A quick sale because buyers have such little inventory to choose from.
  3. Fewer hassles as buyers don’t want to “rock the boat” on the deal.

If you are considering selling your house, you’ll want to beat any impending competition in the market to ensure that you get the most attention on your listing and the best price for your house.

Give us a call for a professional, risk-free, no-obligation consultation on your particular situation so you can make the best decision for you and your family!

 

 

 

 

Conrad Smith
Your Real Estate Consultant
REALTOR®, BOLD, EcoBroker, CNE, CHRE, ILHM, KW Luxury 

Professional Denver Real Estate for the Urban at Heart
www.UrbanProHomes.com