As mentioned last week (Home construction on the rise), the surge in new home construction in May caught many analysts by surprise. The limited number of properties in the resale market – before the pandemic it was 90%; as of April 2023 it is closer to 70% – has many home buyers looking to new construction.
While the signs are optimistic, analysts caution that the Feds announced intention to continue to raise interest rates could bring the building movement to a standstill.
Still, some economists are hopeful that a resurgence in residential construction could add 0.1% to the gross national product in the second quarter.
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