In this week’s Real Estate section, The Washington Post highlighted increased demand for new construction homes. Post reporter, Carisa Crawford Chappell said, “New construction has become the saving grace for a growing number of buyers drawn into the market by historically low mortgage rates fighting over a dwindling inventory of existing homes. And now that unfulfilled demand for resale homes is spurring a boom in the home-building market.”
From Robert Dietz, chief economist at the National Association of Home Builders (NAHB), “Typically, new construction is mainly purchased by move-up buyers ages 35-55. In fact, five years ago, the first time buyer share of the new home market was less than 20%. Today, it’s closer to 30 percent nationwide.”
With the demand for new home sales higher than expected, especially by first time buyers, sales of new construction homes have risen by 18.8 percent.
Margeau Gilbert, a real estate agent with Exit Right Realty in Laurel, cites this type of demand is not new, however, the historically low interest rates “has exacerbated demand. Even in the midst of Covid-19, the market is on fire.”
In the article, Mark Zandi, chief economist at Moody’s Analytics, "expects home building to continue to ramp up because of low mortgage rates and an improving job market post-pandemic.”
In response to the article, Preston Innerst, EYA Marketing LLC's Senior Vice President of Sales, added:
The increase in new home sales activity is evident across all of EYA LLC’s new neighborhoods. Our infill locations with great accessibility have always seen strong demand, but we have seen a noticeable increase during last 6 months in on-line traffic, in person traffic, and sales at all of our communities - which is driven by low resale inventory, continued low interest rates, and a growing frustration with having to deal with the competition and bidding wars in the resale market. The demand has been strong across all price points, from $600s and $700s priced homes at Riggs Park Place and Michigan Park, to elevator townhome product over $1 million in communities such as Tower Oaks, Cabin John Village, and Reston Station. Even the very high-end luxury condo market has seen strong interest, with our Robinson Landing community having sold 5 condominiums from $2.8 million to $4.5 million during the last 90 days. In the current Covid environment, our purchasers are also expressing an increased desire for “new” over “used” homes.
To read the full Washington Post article, click here.
The greater DC metro area has a vast array of incredible walking/biking trails. From the scenic Mount Vernon Trail winding along the Potomac River to the leafy Capital Crescent Trail connecting Georgetown to Bethesda, there are many popular trails that provide endless recreation for cyclists and pedestrians and vital paths for commuters who bike to work.
Dynamic Mixed-Use Neighborhood at Graham Park Plaza Moves Forward as EYA and Federal Realty Close on Sale of 8.3-Acre Parcel EYA to Build up to 177 Townhomes, 12.5 Percent Affordable; Federal’s Revitalization of Graham Park Plaza Underway BETHESDA, MD (March 19, 2021) – EYA, LLC (EYA) announced today that it closed on the purchase of an 8.3-acre parcel at Graham Park Plaza from Federal Realty. EYA plans to build up to 177 townhomes, 12.5 percent of which will be affordable housing. Federal Realty’s improvements to the existing retail and office space on the balance of the property will benefit from positive connectivity to future residents, creating a dynamic and authentic neighborhood offering a mix of uses.
EYA, Bozzuto and the Housing Opportunities Commission of Montgomery County (HOC) announce they have closed on construction financing for the Hurston, located at EYA’s Westside at Shady Grove Metro (Westside), a transit-oriented, mixed-use neighborhood in Rockville adjacent to the Shady Grove Metro Station. The Hurston is a mixed-use and mixed-income apartment building that marks the latest phase of the 45-acre development. Once complete, the 7-story building will feature 21,000 square feet of street-level retail and 7,400 square feet of office space with 268 amenity-rich apartments above – 81 of which are designated as affordable housing units.