When planning a move, it’s natural to be curious about your future home and its appearance. You might even have a specific image in your mind. However, unless you’ve already decided on buying a newly built home, new home construction might not have crossed your mind.
A trusted real estate agent can guide you through two reasons why you might want to reconsider this option.
1. Considering Newly Built Homes Could Expand Your Choices
The housing market offers two types of homes: new and existing. A newly built home is one that has just been constructed or is currently under construction, while an existing home has been previously lived in by another owner. Currently, the inventory of existing homes is limited. However, there may be more opportunities for you in the new home market. Data from the Census and the National Association of Realtors (NAR) indicates that newly built homes constitute a larger portion of today’s housing inventory than usual (see graph below):
From 1983 to 2019, newly built homes accounted for only 13% of the total housing inventory. Today, that figure has risen to over 33%. Despite the recent increase in new construction, builders are not overbuilding. There is still a significant housing shortage overall. However, the rise in new builds can be a game changer for you, offering more options in your home search.
2. Newly Built Homes May Be More Affordable Than You Think
You might wonder if a new build is a viable option for you. If you previously dismissed the idea due to budget concerns, think again. The price gap between newly built homes and existing houses is narrowing. Here’s why.
Builders are responding to current demand. They understand that people need more options, especially smaller and potentially more affordable homes. As a result, they are focusing on constructing smaller homes at lower price points. The graph below illustrates how the price difference between new and existing homes is decreasing as this trend continues:
As LendingTree explains: “In the past, newly built homes have been significantly more expensive than existing homes — but that gap has been narrowing recently. In some areas today, the cost to build versus buy is roughly the same.”
Additionally, some builders are offering price cuts and mortgage rate buy-downs to make the deal more attractive. There are many reasons to consider new builds today. Other buyers are certainly noticing. It’s important to remember that buying a newly built home differs from purchasing an existing one. Builder contracts have different fine print. Therefore, it’s crucial to work with a local agent who understands the market, knows the reputations of builders, and can navigate these contracts. This way, you’ll have an expert on your side to help you explore this option.
Bottom Line
If you’re interested in seeing what builders are doing in our area, let’s connect and explore it together. If you’re open to expanding your options even further, we can discuss broadening your search to include nearby towns as well.
