Housing Demand on Rise, Builders Race to Catch Up
The sale price of houses across the nation rose in 2012 according to the Standard and Poor’s Case-Shiller Index, which can bring both bad and good news to the market. There is a usual low amount of homes for sale because many buyers fear that they would end up purchasing a home before selling their own, or because of the bidding wars where prices jump drastically. Many people are looking to purchase a home, but since there are not enough homes available, they do not want to take the risk. The demand is so high for new houses that large and small investors are searching for the backlog of foreclosures and short sales, but they face the problem of finding construction workers and obtaining permits to begin production.
Although the economy is slowly improving, California faces difficulty in producing more homes because they have more regulations and permits, which takes up more time to have the permits approved. Also, many of the immigrant heavy industries have switched to other industries, filed for disabilities, or dropped out of the labor force overall. Since there is such a high demand for houses, I think that it opens many opportunities for jobs as well as lower prices for buyers. This will also allow sellers to be more eager where they will not worry about having to purchase a home before selling their own.
Written By: Samantha Chin
Source: The New York Times
Rampell, C. (2013, March 21). Housing Demand on Rise, Builders Race to Catch Up. Retrieved March 21 2013, from The New York Times : http://global.factiva.com/ga/default.aspx?imt=2&ao=14&aod=1811683