New Construction on the rise

 Effects investors, here's how....

New Construction in the US  rises by 15% in September

Economist are reporting that new construction is on the rise in the US. The new construction of single family homes and apartment complexes increased by 15% in September . This is the fastest growth rate that the US housing market has seen in four years. This a good sign for the housing market.  Economist contribute the growth to: low mortgage rates, more stable home prices and a shortage of previously occupied homes for sale. Which could mean that we will start seeing the median  home price rise.

Douglas Yearley, CEO of Toll Brothers Inc, comments on the rise,"I don't have that crystal ball, but I will say we're seeing the best sales we've seen in five years, and it sure feels good," Toll Brothers Inc is a custom home building company that  builds luxury homes in 20 states.

Single-family homes, which made up more than two-thirds of the new construction, rose 11 percent to 603,000. This is the  quickest rate  we have seen in four years. The US market also saw the construction of  apartments rise by 25.1 % as well.

"The housing market is improving, and there is no reason to think that this will not continue going forward," said Patrick Newport, U.S. economist at IHS Global Insight.

It seems that  the housing market is heading in the right direction and that we have seen the worst from the collapse of the housing market.

What does this mean to real estate investors?

It means that this is probably a good time to adjust your investment plan to start incorporating more flips. The lack of inventory is causing the prices of homes to rise. This is a good time to buy a property low, renovated it, and sell the property for a profit. You as an investor can use this opportunity to capitalize on the shortage of houses available before the new construction has been completed.

Here is a tip  for you:

When flipping houses, investors tackle two things first: kitchens and bathrooms. “People buying a house look first at kitchens and baths,” says Kermit Baker, director of the remodeling futures program at the Joint Center for Housing Studies at Harvard University. 

-Aaron Schoenberger  House Flipping Returns Due to Demand, Inventory Shortage http://www.fixandflipnetwork.com/2012/10/demand-for-house-flipping/

Hope you enjoyed!!

-Auben Realty Improving Augusta One Home At A Time