Builders Speed Up Townhome Construction, Townhouse construction continues making gains as buyers’ appetites once 
again increase for this type of single-family attached housing.
Over the last four quarters, ending with the first quarter of 2018, townhouse starts were 7 percent higher than the prior four quarters. Townhouses accounted for 21,000 starts during the first quarter of 2018.
The market share of new townhouses now stands at 12.3 percent of all single-family housing starts, according to an analysis from the National Association of Home Builders.
Over the last two decades, the peak market share for townhome construction was reached in the first quarter of 2008, when the share was at 14.6 percent of total single-family construction.
“I expect future gains in the share as townhouses are a useful bridge from rentership to homeownership for younger prospective home buyers in high-cost markets, among other market opportunities.” “The long-run prospects for townhouse construction are positive given the large numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.”
Mortgage rates reversed course and soared to the highest averages in seven years, Freddie Mac reports. The 30-year fixed-rate mortgage averaged 4.61 percent this week, which matches the highest level since May 19, 2011.
“Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels of buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”
Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates
Source: Freddie Mac,National Association of Home Builders’ Eye on Housing blog (May 17, 2018)
again increase for this type of single-family attached housing.Over the last four quarters, ending with the first quarter of 2018, townhouse starts were 7 percent higher than the prior four quarters. Townhouses accounted for 21,000 starts during the first quarter of 2018.
The market share of new townhouses now stands at 12.3 percent of all single-family housing starts, according to an analysis from the National Association of Home Builders.
Over the last two decades, the peak market share for townhome construction was reached in the first quarter of 2008, when the share was at 14.6 percent of total single-family construction.
“I expect future gains in the share as townhouses are a useful bridge from rentership to homeownership for younger prospective home buyers in high-cost markets, among other market opportunities.” “The long-run prospects for townhouse construction are positive given the large numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities.”
Mortgage rates reversed course and soared to the highest averages in seven years, Freddie Mac reports. The 30-year fixed-rate mortgage averaged 4.61 percent this week, which matches the highest level since May 19, 2011.
“Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels of buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.” Ready to Buy or Sell? If you’re interested on a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.
#RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates
Source: Freddie Mac,National Association of Home Builders’ Eye on Housing blog (May 17, 2018)
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