The 'New' Search
If misery loves company, frustrated buyers that can’t find an affordable home can take comfort in this: Those with their hearts set on new construction face an even bigger challenge.
While “the market needs 1.2 million [new homes] to keep up with household growth,” new single-family homes, which includes town homes and duplexes, have fallen much below that since the recession, notes Robert Dietz, economist with the National Association of Home Builders. “Even by 2020, starts are projected to be only one million.”
New housing is especially scare at the median and lower end of the cost spectrum, since two major reasons for shortages are the absence of acreage near metro centers to build affordable developments and the escalating cost of lumber.
Determined buyers need good shopping strategies, say experts.
1. Get the first word.
“Go to the websites of all the builders in your area – you can find listings of builders at the website of the local home builders association – and look for a place to sign up for news sent to your email,” suggests Nat Hodgson, CEO, Southern Nevada Home Builders Association.
Besides beating out competition from later buyers, prices are often lower before groundbreaking, says Hodgson. Buyers are typically required to put down a relatively small non-refundable deposit when they choose their lot and home design. “The only time you’d probably be asked to put down more is if you order unusual upgrades,” Hodgson says.
2. Have a real estate agent who has relationships with many builders keep you posted.
“I just had a builder with a buyer that cancelled call,” says Chris Bishop, 2018 president of the 2018 Greater Las Vegas Association of Realtors. “I had a client who wanted it.”
3. Follow local zoning news.
Before a builder purchases land for development, the municipality must approve his plan, says Bishop. Local newspapers and municipal newsletters typically report on zoning issues.
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