Plan specific home builders have been quite busy lately across the United States. Though the homebuilding market is constantly fluctuating, at least in recent months, it’s been much more steady and trending upwards.
According to The New York Times “Business Day Market” report, the homebuilding industry, which consists of organizations engaged in the construction of residential homes, has been doing quite well across the country. In part, that’s because housing supply is extremely low right now, which means there’s strong demand for newly built homes.
As of October 4, homebuilding stocks are trending upward after a successful September. Last month, the homebuilding market saw a 675.84 increase on the Dow Jones. Additionally, the 52-week change saw an increase of 24.75%.
In 2015, of all the 648,000 single-family homes completed, roughly 66,000 had two bedrooms or less and 282,000 had four or more bedrooms. Clearly, home buyers are favoring larger homes that can accommodate a growing family. Though the type of plan specific home designs certainly plays a role in the industry’s success, there are a few other factors that positively contribute to the overall homebuilding market.
Here are the four major factors that contribute to a successful homebuilding market.
The actual land available for home builders to perform construction is an essential aspect of market growth. Simply put, if there isn’t enough open land for new housing developments or projects to begin, the market will clearly struggle to keep up with rising demand. If existing properties are demolished, however, or if plenty of land becomes available for residential construction, this will lead to an increase in plan specific homes and new housing starts.
The performance of homebuilding stocks is often significantly influenced by mortgage rate levels and funding costs. Cheaper financing leads to higher demand for new homes and, consequently, when monetary policies are tightened, the cost of funding rises, subsequently hurting overall housing demand. While the federal reserve has discussed the possibility of raising rates, so far the fed has stuck with a very cautious monetary policy. For now, that’s more good news for home buyers and builders alike.
These are just two of the contributing factors that the homebuilding market depends on. If you are in need of plan specific home builders or want to check out some quality homes in Tampa, contact Inland Homes today. Meanwhile, stay on the look out for part two of this piece where you will find out the other factors that contribute to a successful homebuilding housing market.