For the past couple of years, new construction homes were the envy of the neighborhood. They had brand new granite countertops, walls without holes, and sometimes a garage door! In 2020 and 2021, homebuyers were happily bidding over asking price just to get a new home, even if that meant missing appliances or garages that couldn’t even close. Now, builders are offering incentives and slashing prices to get buyers through the door. What happened?
What comes up must come down, and this rings true in the 2022 housing market. New homes couldn’t be built fast enough last year, but now, builders are trying to liquidate their homes as quickly as possible. But this doesn’t affect us everyday homebuyers—right? Not quite. These price cuts and dwindling demand could feed an even more gruesome economic beast that many of us aren’t prepared for.
On this Friday episode of On The Market, Dave is flying solo as he gives us the data and insight behind the new construction market. He also touches on the three economic impacts of this large-scale sell-off. The housing market has been bumpy over the past few months, but it may get even wilder.
In This Episode We Cover
The new construction vs. existing homes market and how they differ in demand
Why homebuyers were willing to pay a premium for new homes but now are sitting silently
How a slowing construction market could lead to an even more intense housing supply shortage
The US economy and real estate market's impact from these price cuts
Whether or not existing homes will see an uptick in demand as new construction lags
And So Much More!
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On The Market Podcast 31
Is The Housing Market About to Collapse? What Investors Need to Know
National Association of Home Builders Data
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-35
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