Over 1 million new homes went under construction in February
1,178,000 to be more precise. That is music to perspective home buyers’ ears. With the low number of homes currently on market, a flood of new homes should help new buyers find the right place. The number of existing homes on the market has decreased dramatically. In Knoxville alone, the number has dropped 11% from 2015 to 2016. For buyers, this means higher prices on the market and fewer homes to choose from making it difficult to find that dream home. The solution? Brand new homes! Typically new buyers don’t purchase new houses. Contractors can focus on building more luxury homes to respond to demand. The result is the emptying of existing homes by families looking to upgrade while new buyers work through a plethora of newly marketed homes. This isn’t happening overnight and the market is still a sellers’ market, but considering the amount of new home groundbreaking, the market seems poised for a slight shift in buyers’ direction.