Bailey believes inventory concerns will play a role in buyer’s decision-making process, as does Brooks; both referenced recent reports from Appraisal Research Counselors stating in Dec. 2013, only 450 new construction condo units remained unsold in Chicago.
“When you pair limited inventory with growing buyer confidence, you get extremely high demand and strong competition for desirable units,” Bailey says. “If a buyer sees something they like, they need to act quickly, which will only add to the positive trajectory of the market.”
Condon agrees, “Low resale inventory levels will continue to encourage demand for new construction, especially as builders open more communities in desirable locations. Interest rates still remain very low, allowing buyers to afford buying new without the out-of-pocket expense of updating an existing home that has been lived in.”
Inventory is low, but there are a massive number of new construction units hitting the market this year, and next (so many, in fact, some are fearing oversupply). Condon says that after 2013 proved to be a “comeback year,” he has high hopes for 2014.
“I expect housing to be strong and continue to rebound, albeit moderately versus aggressively,” he says.CA