2020 was a tough year for buyers. Low inventory made it difficult for potential buyers to find the right property—and if they did find a home they were interested in, demand often drove up prices and competition, making it hard to get an offer accepted.
But builders have taken notice and are increasing their activity in order to keep up with rising demand—which means hope for buyers is on the horizon.
According to recent data from the U.S. Census Bureau(outlined in an article from realtor.com), in December 2020, home builders started construction on new homes at a seasonally adjusted rate of 1.67 million, up 5 percent year-over-year. Housing permits also saw a healthy increase, with permitting for new home builds hitting a seasonally adjusted rate of 1.71 million—up 17 percent year-over-year. Combined, December 2020 saw the highest level of housing starts and new building permits since 2006.
So, what does this mean for you? Inventory has been extremely low across the country, making it challenging for buyers to find properties. But with all this new construction activity, there will be more homes hitting the market—so, if you’ve been thinking about buying a home, it looks like the market should be much friendlier to buyers in the near future.