If you read the Herald yesterday, you might have caught this article about the upswing in new construction.
Other than the fact that this means more jobs, and a boost to the economy, it’s good news for the local real estate market, too.
When no one is building new homes, the current supply of homes is all there is. Therefore, a seller’s market is created. Limited supply combined with regular or increased demand creates a situation where home prices rise. While this is good news for sellers, it isn’t for buyers. A balanced market is actually the ideal situation.
Be sure to read the whole article I linked to in the first sentence. They interview a cross section of builders in different price ranges, all of whom report positive news.