New home construction in America came close to a halt last month when it fell to its lowest level in nearly 50 years. At this rate Americans are on track to buy fewer new homes since the government began tracking this data over 50 years ago. According to a report recently released by the Department of Commerce it showed that nationwide home construction was down 22.6 percent from the month of January. The Midwest particularly took a hard hit with new home construction housing falling 48.6 percent. The decrease in the new home construction industry has driven the median price of a new home down to $202,000, which is the lowest price since 2003.
The Builders Association of the Twin Cities tracks the number of building permits that are pulled in each municipality and it appears there may be a slight increase in the demand for single-family homes. In February there were 178 permits approved in the Twin Cities and a majority of those were for single-family houses.
New home construction may be stagnant right now but home remodeling is picking up. According to a national index recently released it reported that remodeling rose 22 percent in January. This was the 15th month in a row that an increase was seen. This indicates that more Americans are choosing to remodel rather than move.
New home construction may be down but there are deals to be had in the existing housing market. If you are looking to buy or sell a home contact me. Our group specializes in Eden Prairie Real Estate, Chanhassen Real Estate, Chaska Real Estate, Lake Minnetonka Real Estate, Edina Real Estate and West Bloomington Real Estate.
Brace Helgeson/ Coldwell Banker Burnet/ 952-974-3466