Does it seem this spring more and more apartments, condominiums and houses are breaking ground in the Tennessee Valley? That’s because they are! Housing production rebounded across the country as well as in the South in March as buyer demand remains solid due to low mortgage interest rates. Overall housing starts in the U.S. increased 19.4%, according to a report from the U.S. Department of Housing and Urban Development. This was the fastest pace for combined single-family and multifamily construction since June 2006.
However, continued lumber and building supply shortages are weighing heavily on new home builders. “The test for the industry this year will be balancing growth and higher construction costs, given ongoing housing affordability challenges,” according to the National Association of Home Builders Chief Economist Robert Dietz.
On a regional basis, new housing starts are 13.5% higher in the South. New housing production continues to be strong in our area because, “rates were so low in 2020, driving purchases and especially refinances, so existing inventory remains low,” says Home Builders Association of Greater Chattanooga member and Synovus Mortgage Loan Originator Holly J. Walsh. This mix of low finance rates combined with low inventory has created a seller’s market, pushing many to look into new home production.
Are you looking to get a new home loan in this competitive market? “My best advice is to work with a local realtor who knows the market and can help you be prepared to move fast and if you like a home make a quick offer,” says Walsh. “Another key is to make sure you have gotten your prequalification taken care of so that you already have a letter to submit with your offer to let the seller know that you are serious! Make sure to talk to a Mortgage Loan Originator when you begin house hunting.”
The Home Builders Association of Greater Chattanooga is an invaluable tool to our community comprised of local professionals dedicated to the continued betterment of home services for both new and existing homeowners. To find a reputable, qualified realtor, builder or housing professional in the greater Chattanooga area, visit the membership directory at www.HBAGC.net. And to have your business be a part of this non-profit organization, visit https://hbagc.net/membership/membership-application.