The National Association of Home Builders reported a six-point gain in August in the housing market index. That is equal to the record high in 1998 over 35 years since the reporting started. Though there was a crash when Covid-19 hit, the numbers bounced back due to the unrest in certain regions of the country. People are not only moving to the suburbs from cities like New York, Chicago, Houston, Boston, Atlanta, and San Francisco, but we are seeing a trend here in the Las Vegas Valley of buyers leaving their states entirely and buying homes here.
The sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB Chief Economist Robert Dietz. “Single-family construction is benefiting from low interest rates and a noticeable suburban shift in housing demand to suburbs, exurbs and rural markets as renters and buyers seek out more affordable, lower density markets.”
Locally, new home construction is booming. Lennar, KB Homes, Toll Brothers, Pardee and DR Horton all have new housing projects in development. Existing communities like Inspirada and Cadence are actually expanding their footprints with new home construction.
If you were thinking about buying a new construction home, you will not want to waste any time. All of this new construction has caused lumber prices to skyrocket by 60% over the past 3 months. In addition, many mills and logging operations shut down over Covid and they were unprepared for the sudden demand. This means the cost of new construction is going up.
New construction homes for sale in Las Vegas