Economists are Calling for an Increase in New Home Construction in Newport News

Real estate economists and experts attending the Realtors Legislative Meetings & Trade Expo (2018) expressed their concern about the slowing and in some places almost stagnating pace of growth in the sector. The residential real estate sector in Newport News has not been growing and expanding sufficiently in the last few years. There have been spurts of developments but not on a widespread scale. The panelists raised an alarm at the event while discussing the Outlook for Home Prices and Residential Construction. All of them agreed that the solution lies in new home construction in the city and the surrounding areas.

The speakers highlighted the problems of rising home prices, which is predominantly due to low inventory. Micro and macro economies are largely influenced by major industries, including the vast small to medium scale enterprises. Real estate is one of the most influential industries and it can easily disrupt economic growth or worsen a slowdown, as became evident during the financial crisis ten years ago. The housing market in Newport News has shown no sign of sustained growth. Many economists and not just those who are experts in the real estate market have warned of an impending recession. If the national economy shrinks and the negative growth sustains then the already stagnated real estate sector could be hit hard.

Evan Roberts, the owner of Dependable Homebuyers was one of the attendants at the event. He allayed the fears of many that there is a bubble. He and other speakers addressed the audience with facts pertaining to over leveraging by banks, bad loans, home prices to income ratio and the expected growth or stability of the real estate market. All panelists agreed that there is no reason to be alarmed than another housing market collapse is around the corner. However, this does not imply there is no crisis at all. The home prices to income ratio has been increasing over the years. It is nowhere near to the ratio in 2008 but if it does get worse then a housing market crisis becomes inevitable.

Mr. Roberts illustrated the need to boost new home construction in Newport News. He said that low inventory is causing unusual spikes in prices of homes. This is leading to an affordability crisis. Young adults who are otherwise perfectly capable to buy homes are resisting the idea due to the spiked prices. Many are renting and others are considering buying old houses for a much reduced price. The housing market cannot grow and it cannot be sustainable either if there is limited new home construction. Here's a recent press release they published.

All speakers including Evan Roberts are advocating for a marked shift in the positions taken by important players in the real estate market. The household debt to income ratio must be reduced. The home prices to income ratio should be more conducive for home buyers. The inventory should grow and expand. There should be sustained activity to trigger short term and medium term growth. New home construction in Newport News is at the crux of a stable economy in the state of Virginia. For more information about the company and the services they provide visit https://docs.google.com/document/d/1-CWp1ib4_0_lA-4kS4BQ8q58Wi9uhAZ0CPnKeoG5-V8/preview.