By Steve DicksonPosted May 19, 2018 07:14:39US home improvement magazine Backwoods Home magazine says it is “stunned” by the current wave of construction activity in the US, saying that it has been “hijacked by an increasingly sophisticated, tech-savvy class of investors”.
In a survey published today, Backwoods says that more than 1,400 new homes were completed or are under construction in the United States in the first quarter of 2018, with new home sales expected to hit a record $10.6 billion for the year.
It said that in 2017, just one in 10 new homes built in the U.S. was sold to the public.
However, in 2018, just three in ten new homes sold to prospective buyers were to individuals, while more than a quarter of those homes were purchased by families.
“While these numbers don’t mean a flood of new construction is imminent, the data paints a clear picture of a new wave of home ownership, and it’s only the beginning,” Backwoods wrote.
“This new wave is taking place alongside a new and highly focused market for homebuyers, and we expect these numbers to continue to rise over the coming months.”
Forbes, a US property website, earlier this month reported that the number of new homes being built in 2017 reached the record high of 1,403, and that there are now nearly 7 million homes under construction across the country.
However it also said that it expects the number to fall to 2 million by the end of the year, with only about 2.5 million homes completed in 2018.
In the meantime, the housing market has been battered by a massive surge in foreclosures.
Last year, there were an estimated 7.7 million forecloses on the market, more than the number foreclosed in all of 2015, according to data from the US Department of Housing and Urban Development (HUD).
The median foreclosure rate in 2018 was 7.5 per cent, up from 7.2 per cent in 2017.
In January, the Department of Labor announced that the median foreclosure in the country was 1.3 per cent for new mortgages, a record high for a single month.
According to the Department, foreclosing on homes for the first time in six years is also on the rise.
In 2018, the number in foreclosure was up by 13.8 per cent from the previous year, to 3.1 million, while the number was up 4.6 per cent overall, to 2.6 million.
But the number still fell slightly, from 4.1 per cent to 3 per cent.
“The overall foreclosure rate is still lower than it was six years ago, but the foreclosure rate for new loans in 2018 is down from 3.5 percent to 3 percent, according the report.”
Backwoods Home says that new home construction has had a negative impact on the housing supply, particularly in communities of color, but that it is working hard to change that.””
These are the kind of foreclosed homes that can be an opportunity for homeowners to get back on track with their mortgages.”
Backwoods Home says that new home construction has had a negative impact on the housing supply, particularly in communities of color, but that it is working hard to change that.
“Our data shows that a significant percentage of new home builders are black and Latino, and the median number of foreclosure foreclaws is actually higher among these communities than among white or suburban communities,” it said.
“So it’s important to note that in many of these communities, home building is predominantly a white thing.”