Newly Built Homes Could Be a Game Changer This Spring
Buying a home this spring? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But what if there was a solution that could help with both?
If you’re having a hard time finding a home you love and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why.
New Home Construction Is an Inventory Bright Spot
When looking for a home, you can choose between existing homes (already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than in more typical years like 2018 or 2019. Newly built homes expand your pool of options.
As Danielle Hale, Chief Economist at Realtor.com, explains:
“The shortage of existing homes for sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”
And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show new home construction trends (see the recent spike in green):
Starts, or homes where builders just broke ground, have increased significantly. Completions, homes that are move-in ready, are also up. So whether you want a ready home or want to customize a build, your options are broader than before.
Builders Are Offering Incentives To Help with Affordability
Builders are offering mortgage rate buy-downs and other perks for homebuyers. This can offset today’s affordability challenges while getting you into your dream home.
Mark Fleming, Chief Economist at First American, explains:
“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. Many public home builders have said they will continue incentives, especially mortgage rate buydowns, so the new-home market should perform well this spring.”
According to HousingWire, sales incentives are on the rise:
“The use of sales incentives still shows some momentum, as 60% of respondents reported using them, up from 58% in February.”
Buying from a builder differs from buying from a home seller, so partner with a local real estate agent. They will review and negotiate contracts, advise on quality and upgrades, and guide you through every step.
Bottom Line
If you’re struggling to find a home or with today’s affordability challenges, let’s connect to see if newly built homes could be the solution for you.
