Why It's Worth Seriously Considering A Newly Built Home
Are you delaying your decision to sell due to concerns about finding a suitable home for your move? If that's the case, it might be opportune to contemplate the advantages of opting for a newly constructed home. Here's why.
Near-Record Percentage Of New Home Inventory
Newly built homes indicate a growing significance in today's housing market. According to the latest 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.”
This implies that the proportion of newly built homes among the total available homes for purchase is more than two times higher than the average. Moreover, even more newly constructed homes are anticipated to enter the market.
Recent data from the Census reveals a rise in housing starts (indicating when builders commence construction on new homes) and housing completions (representing homes where construction has recently concluded).
While concerns may arise about an oversaturation of the market with newly built homes, this is not a valid worry. On the contrary, the recent surge in construction is viewed as positive news, as explained by Lawrence Yun, Chief Economist at the National Association of Realtors (NAR).
“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 Benefits You
Given the current low supply of existing homes for sale, the surge in new-home construction can be a game changer, expanding your options for a more fulfilling search.
Imagine residing in an entirely new home - from appliances to paint - with fewer maintenance requirements since everything is freshly built. Doesn't that sound appealing?
Moreover, this dream may be more attainable than you think. Some builders are currently offering incentives like mortgage rate buy-downs for homebuyers, helping to address affordability challenges and bringing you closer to your ideal home. In a recent article, Patrick Duffy, Senior Real Estate Economist at U.S. News, elaborates:
“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.”
It's crucial to note that the process of purchasing a home from a builder differs from buying from a home seller. Hence, it's essential to collaborate with a trusted real estate agent familiar with the local market. They will serve as your go-to resource for coordinating with the builder, reviewing contracts, and more.
If you're struggling to find a home you like while attempting to sell and make a move, reach out to us, Focus Real Estate Team. We can guide you through exploring available options, including newly built homes in our area.