Marietta, GA (PRWEB) June 13, 2016
Over the past decade, the economy hasn’t been very kind to the real estate market. But, industry experts are expecting things to change rather significantly over the remainder of 2016 and into 2017. The surging market is a direct result of steady job growth, affordable home prices, and still-attractive mortgage interest rates. An increased demand for housing will also play a role in helping the market continue on its gradual climb.
Yet, despite the market’s encouraging growth, a shortage of construction lots and labor, and continued difficulty for buyers searching for approvals for construction and development loans, continue to hamstring what could be an even stronger recovery. As a result, builders are remaining cautiously optimistic about the current conditions of the market.
2016 Looking to Be a Strong Year for Single-Family Homes
According to the National Association of Home Builders, 2016 is shaping up to be the first year since the Great Recession where the growth rate for single-family production is higher than that of multi-family. In fact, the NAHB expects single-family home growth to increase exponentially throughout 2017 as industry supply side chains repair themselves and production improves.
The market in 2016 is also expected to be the strongest since 2006 as a result of the following factors:
- Household formations are projected to accelerate
- Purchase applications show solid home sales with coordinated demographics
- Fewer defaults and foreclosures nationally
- Salaries and wages are increasing on a national level
- House prices are rising about 6 percent annually
- House prices are roughly in line with incomes and rents
- Freddie Mac is projecting 5.9 million total home sales this year (highest level since 2006), and 6.2 million in 2017
The Housing Market Forecast
Single-family home production is expected to rise approximately 14 percent in 2016 an additional 19 percent in 2017. By the fourth quarter of 2016, single-family home production is expected to top out at 64 percent. By comparison, in 2009, production tanked all the way to 27 percent. Experts are anticipating single-family home production to climb even higher in 2017, with the year-end tally predicted to be as high as 77 percent. Currently, single-family home production stands at 58 percent of normal activity.
The Pace of Recovery Varies By State and Region
As promising as the real estate landscape is looking, it is important to understand that the pace of the market’s recovery is different from one place to another. Every state and region is recovering at its own unique pace because today’s market is being driven by the traditional housing market fundamentals – regional population and job growth.
Visit Southland’s Home Builders in Georgia
Southland Custom Homes is one of the leading custom home builders in Georgia. If one is looking to take advantage of the surging real estate market conditions, then now is the time to plan a visit to one of our showrooms. Southland has a professional in-house design team that can help design the perfect new home.
With over 100 floor plans to choose from and an array of top-of-the-line interior appointments, Southland Custom Homes provides a huge selection of plan options and custom features. Southland Custom Homes will work with new home buyers to alter specific floor plans so that the finished project is exactly what the buyer wants. If one is looking for a trusted builder of new homes in Georgia, then Southland Custom Homes will be sure to meet and exceed all expectations.
Southland Custom Homes is one of the premier home builders in Georgia. Visit one of the model showrooms in Macon (3956 Bloomfield Village Drive, Macon, GA 31206), Dawsonville (98 Bethel Drive, Dawsonville, GA 30534), or Marietta (265 N. Cobb PKWY, Marietta, GA 30062) to see all that Southland has to offer! Visit the website at http://www.southlandcustomhomes.com.