Why You Should Consider a Newly Built Home
Are you postponing your plans to sell because you are concerned you will not be able to find a suitable home when you move? If so, it may be time to consider a newly constructed home and the advantages that come with it. Here’s why.
Near-Record Percentage of New Home Inventory
Newly built homes are becoming an increasingly significant part of today’s housing inventory. According to the most recent report from the National Association of Home Builders (NAHB):
“Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average.”
That means the percentage of the total homes available to buy that are newly built is well over two times higher than the norm. And even more new homes are on the way.
Recent data from the Census shows there’s been an uptick in both housing starts (where builders break ground on more new homes) and housing completions (homes where construction just wrapped).
And while some people may worry builders are building too many homes, that isn’t a concern – if anything, the recent increase is really good news. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“Even more home building will be needed with the housing shortage persisting in most markets . . . Another 30% rise in home construction can easily be absorbed in the marketplace . . .”
How This Helps You
Because the supply of existing homes for sale is still low, an increase in new-home construction can be a game changer by providing you with more options for your search.
Consider living in a completely new home: new appliances, fresh paint, fewer maintenance requirements because everything is new, and much more. Does not that sound good?
And it may be more within reach than you ever imagined. In addition, some builders are offering things like mortgage rate buy-downs for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. In a recent article, Patrick Duffy, Senior Real Estate Economist at U.S. News, explains:
“Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high, . . .Today more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more home for the same payment amount.”
Remember that buying from a builder is not the same as buying from a home seller, so work with a reputable real estate agent who is familiar with the local market. They will be your go-to source for coordinating with the builder, reviewing contracts, and more.
If you’re trying to sell so you can make a move, but you’re having a hard time finding a home you like, let’s connect. That way, you have a local expert to help you explore all of your options, including the newly built homes in our area.