Many people who purchase property as an investment realize the value of tearing down old houses and building newer, sexier, houses in their place. However, new constructions have dropped by 9% since September, which may cause people in the business some concern. The good news is that more permits are being issued, suggesting the new construction market will make a full recovery.
The slowdown, that is likely almost over, was seen most in buildings with multiple units (rental properties), not single family homes. Multi unit properties saw a 28% decrease in September. It should be noted that construction on new single homes actually rose about 2.8% from where it was last year.
The bottom line is that low mortgage rates have revitalized the new construction market. This has occurred because the supply of homes is lower than the demand, and builders are able to purchase more with their money because the rates are so low. Thus, if you’re considering building new structures to maximize your profits, now is a very good time to do it.
At the Chernov Team we understand that knowledge is power, and knowledge of the fact that new construction market is in a great position to become very profitable very quickly is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.