There is a pretty strong consensus among economists and Real Estate Industry experts that new home sales in 2015 are expected to rise 25%. This will be the best year for new home sales since 2007.
This number is very encouraging, representing approximately 820,000 new home starts in 2015, but it is still below the 1 million historical average.
What is holding back new home construction?
- Lending – both to home buyers and builders
- Millennial student debt holding back first time home buyers
- Builders have not expanded their land positions to more peripheral areas
What will boost new home construction in 2015?
- Strong economic recovery
- Improving Labor market
- Low inventory levels in resale