Why It May Be Time To Add Newly Built Homes to Your Search
It can be a good time to resume your home hunt if you put it on hold because you weren't sure where you'd go after selling your home. You might have more alternatives and incentives available to you than you think if you're prepared to consider buying a newly constructed house with the help of a reliable agent. This may be the cause of the National Association of Home Builders' (NAHB) claim that a growing proportion of buyers are interested in new construction:
“According to the quarterly Housing Trends Report, the popularity of new construction homes is continuing to rebound . . .”
Here are a few factors that could make freshly constructed homes more appealing to purchasers.
There are more options and potential builder incentives.
You have the option of buying a newly built home or an existing one (one that has already been built and owned by someone else). Despite an increase this year, the supply of existing homes is still less than in years like 2019, which are more normal. There is currently 3.2 months' worth of inventory at the current sales rate, according to the National Association of Realtors (NAR). We are currently in a sellers' market because, as a point of reference, a balanced market has an approximate 6-month supply.
The supply of newly constructed homes has increased even though it represents a smaller portion of the overall inventory of homes for sale. According to the National Association of Home Builders (NAHB)
“New single-family home inventory remained elevated at a 9.2 months’ supply (of varying stages of construction). A measure near a 6 months’ supply is considered balanced.”
Here is why this is significant to you. Although there are more homes available in each categories, freshly constructed homes have an additional advantage. Builders are driven to sell their homes before they start on new ones since the inventory of recently constructed homes has risen significantly.
Builders built too many homes prior to the 2008 housing catastrophe, which is one of the factors that led to the housing bubble bursting. Builders are now trying to move their inventory along because they don't want to have an excess of it in their pipeline. According to Doug Duncan, chief economist at Fannie Mae:
“. . . a continual increase in the number of completed homes available for sale is now occurring, with the inventories of such homes now at the highest level since July 2020. . . . This suggests to us that builders may be increasingly willing to offer more aggressive incentives and discounts to maintain sales of completed inventory.”
Although specifics depend on the builder and the market, some purchasers have reported getting price reductions and incentives from builders. Consult a reliable real estate expert to learn what's available in your region.
Lifestyle Advantages of Purchasing a New Construction Home
Newly constructed houses have a number of advantages that may fit your lifestyle, in addition to increased supply and the opportunity for builder incentives. For instance, you probably won't need to deal with as many little repairs, such as leaking faucets, painted shutters, and other small tasks around the property. You may use that time to pursue other interests that you have.
One advantage of a brand-new house is that it is empty. It has always been wholly and newly yours. You'll enjoy brand-new windows, roofing, and other amenities. Your energy expenditures can be decreased by doing these things, which over time could result in sizable savings. Your new home might even include the newest and best technological amenities.
Why some purchasers are choosing newly built houses today, as summarized by the builder:
“For some, it’s the lure of something new and modern. For others, it’s the move-in ready experience. And now there’s another factor to consider when making this decision: technology.”
If any of these advantages pique your interest, it's time to get in touch with a reputable real estate advisor to find out more.
To sum up
Let's connect if you're thinking about buying a newly constructed home so you can get a professional guide on what's available in our neighborhood market. We'll discuss your options and the advantages of a brand-new home together.