There is no better time than right now to invest in real estate. Thanks to low mortgage rates, it is now possible for the average investor and prospective homeowner to get even more home for their money. But a significant problem looms on the horizon — a lack of inventory. —
Because many people see the solid opportunities available right now, there has been an increase in buyer competition for real estate, which drives up prices and leaves many potential investors unhappy. That’s why real estate investor Andrew Shader recommends considering an investment in newly built homes during this period of intense buyer competition.
Mr. Shader acknowledges that newly built homes will not solve all inventory problems when it comes to real estate investment, but it is still a great place to start searching. This is especially true if someone is merely looking to invest in their first home.
According to the National Association of Realtors (NAR), now is a great time to invest in recently built homes. NAR’s Senior Researcher and Director of Forecasting Nadia Evangelou argues that recent research suggests new home construction is currently following an upward trend.
The research suggests that housing starts — new residential construction projects that begin when construction begins on the footings or foundations of a residential building — are reaching a peak. In fact, just last March, they reached their highest level since 2006.
If that’s the case, then newly built homes could see a boost on the supply side in the short term. This means it’s a great opportunity for anyone who is looking to get into real estate or become a new homeowner.
But as it turns out, there is even more reason to believe that this is the case. In a recent report from the U.S. Census Bureau, the number of new housing starts increased even more in May of this year. This is following a growing trend over the last three years that shows signs of increased housing production across the country. As the supply of lumber and building materials increases over the next few months, production will surely continue to increase.
With this increase, even more homes are being sold before construction even finishes. Mr. Shader expects this trend to continue to grow over the coming months — making now a perfect time to get into the market with a newly built home.
About Andrew Shader
Andrew Shader is an entrepreneur and a successful real estate developer and investor in Fort Lauderdale, Florida. He got his Business Management and Marketing degree from Florida State University. After spending years in the insurance industry, Mr. Shader decided to shift his focus to real estate. Andrew specializes in value-added properties and boosting property value through investment.
Release ID: 89043289