One of the key factors driving the increase in new home sales is the exceptionally low inventory of existing homes for sale. Homeowners with ultra-low mortgage rates are reluctant to sell their homes to buy another one at higher rates. This hesitance to sell has resulted in a decline in sales of existing homes, while new home sales have been on the rise. This trend highlights the appeal of new construction for buyers who are looking for alternatives in a competitive market.
The demand for affordable housing is one of the most pressing issues in the housing market. The rise in housing prices combined with stagnant wages, has make it difficult for many individual and families to find safe and secure housing. In 2023, it is expected that access to affordable housing will continue to be a challenge. Innovative solutions will be necessary to address this issue and provide affordable housing options for those in need.
The COVID-19 pandemic has caused many people to reevaluate their living arrangements, with larger homes and more space becoming increasingly important. This shift in priorities could result in a great demand for housing in suburban and rural area, leading to higher prices. This trend is expected to continue in 2023, especially as remote work becomes more prevalent.
