Despite discouraging May numbers, both housing starts and building permits were on the rise throughout the United States in June, which indicates the demand for housing is holding steady as we rocket towards the final quarter of 2016. Housing starts rose 4.8% and applications for new building permits rose 1.5% in June. According to the U.S. Department of Housing and Urban Development’s August joint press release, housing starts increased yet again in July, while permits held steady.
Here in Nashville, the increase in construction and permitting comes as no surprise. As FOR SALE signs dot the landscape and new construction crops up throughout the city and surrounding areas, the demand for real estate in and around Music City is high. PNC chief economist Stuart Hoffman was quoted in the Wall Street Journal, stating, “Homebuilding continues to gradually recover from the housing bust that accompanied the Great Recession. Demand for new single-family homes is slowly but steadily improving.”
According to an article published last month in the Nashville Business Journal, “The area saw 3,869 homes sold last month, an increase of 1.7 percent compared to June 2015, according to the Greater Nashville Association of Realtors. For comparison, home sales in April and May were up by 11.7 percent and 3.9 percent, respectively. With 2016 now half over, there have been 18,452 closings in the Nashville area, up 7.2 percent compared to last year.”
The housing marketing is enjoying an upswing, strengthened by a strong labor market, encouraging economic forecasts, and the high demand for rental properties. Unfortunately, the home building industry is being constrained by labor and land shortages, as any Nashvillian in need of construction services can surely relate to.
This shortage of land and existing homes on the market is boosting the market for new construction. And with it, the confidence of developers and builders. The National Association of Home Builders index, a monthly gauge of builder sentiment hit 60 this month. (Anything over 50 is considered positive on the NAHB index.)
In today’s booming, but tight, market, it’s important to be ready to pounce on the perfect property and to have the resources you need to close quickly. Working with a real estate attorney can help ensure that you have the information you need to begin the process, that your needs are seen to throughout the process, and that you’re protected during the entire closing. In fact, retaining an experienced real estate lawyer may speed up the process of buying a new home in a tight market. Your real estate attorney will read all the fine print, inspect documentation, run title and deed check, recommend title insurance, review your purchase contract, and will work with your mortgage loan officer and the home seller’s attorney and agents. Getting it right is the name of the game.
To learn more about our real estate title services, contact us today at 615.269.7676.