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Following a steady decline since 2007, new construction appears to have finally turned a corner in the Lake Norman market. By the third quarter of 2012, new listings, pending sales, and closings of new homes in our region were all on the rise, a trend that has showed no sign of slowing in 2013 thus far. In addition, available new construction is up 16.4%, a welcome development in light of Lake Norman's decreasing existing housing inventory.*
If you recall, the home building industry suffered a huge hit during the recent economic downturn. When home values plummeted, builders' profit margins evaporated, virtually halting new home construction in its tracks. Recently, however, we're beginning to witness many of these trends reversing. Costs associated with building supplies and labor have come down, land prices have dropped, and the median value of existing homes is on the rise. This new dynamic is helping restore some balance between the markets for existing homes and new construction, and as a result we're finally seeing more builders return to the market.
New Construction Closings at Lake Norman Jan 2005- Jan 2013
But new construction isn't just an indicator of the real estate market's recovery; it's a key indicator of our region's general economic well-being as well. According to the National Association of Home Builders, three jobs are created every time a new home is built. And not just in the construction industry; about half these new jobs are spread out over other sectors of the economy, such as manufacturing, suppliers, and professional services.
*all data compiled from CMLS
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