For the last several years, home sellers had to compete with huge inventories of distressed properties (foreclosures and short sales). The great news is that the supply of these properties is falling like a rock in the vast majority of housing markets (only 8% of homes sold in August). Many homeowners are now thinking of selling as the impact of this substantially discounted competition has disappeared.
However, every seller of an existing residential property must realize that there is a new form of competition hitting the market: newly constructed homes.
According to the National Association of Home Builders (NAHB), new-home sales topped 500,000, in August, for the first time since 2008.
“This jump in sales activity is in line with our latest surveys, which indicate builders are seeing increased traffic and more serious buyers in the market for single-family homes,” said Kevin Kelly, chairman of the NAHB.
Broken down regionally, new home sales rose:
- 50% in the West
- 29.2% in the Northeast
- 7.8% in the South
- and were unchanged in the Midwest
If you are thinking of selling, perhaps you should do it now to avoid additional competition coming to the market.