New home construction is giving buyers something they have not seen much of lately. It offers a real chance to get both the home they want and the deal they need. More newly built properties are hitting the market, and builders are offering incentives that make these homes more affordable than many people realize.
This combination does not come around often, and it is putting buyers in a surprisingly strong position this season. Here is why this moment matters and why partnering with a local agent can help you make the most of it.
1. More New Homes Are Available Now, and That May Not Last
There is more new construction on the market today than usual. For buyers, that means:
- More cutting-edge communities
- More move-in-ready homes
- More floor plans to choose from
- More upgraded designs and modern features
However, this level of variety may not last.
Data from Zonda shows that even though it may feel like new homes are appearing everywhere, builders have actually started to slow down. The number of housing starts, which marks the moment builders break ground, has been gradually declining over the past few years. This shift helps prevent national overbuilding, but it also means today’s level of choice will not continue forever.
Here is the key insight that can give you an advantage. Forecasts indicate that this slight downward trend in new construction is expected to continue into next year (see graph below).
This signals that the new inventory available today may be your largest selection of brand-new homes for a while.
Redfin reports that about one in three homes on the market, or 27 percent, are new builds. This is higher than usual, yet it is the lowest share in four years, which aligns with the trends shown in the graph above.
If you want the most options to choose from, now is the ideal time to start your search.
You might be wondering why builders are pulling back. The reason is straightforward. With more new homes already on the market than normal, builders are focusing on selling their existing inventory before adding more. This leads to the next important point.
2. Builder Incentives Just Hit an All-Time High
Here is where things get even better for buyers. To keep their current inventory moving, builders are offering incentives at levels not seen in years, many of which directly improve affordability. Buyers today are seeing benefits such as:
- Lower Prices: Builders are reducing prices on new homes to attract buyers.
- Help with Closing Costs: Some builders cover thousands of dollars in fees to reduce upfront costs.
- Extra Upgrades: Premium finishes, appliance packages, and designer features are often included at no extra cost.
- Mortgage Rate Buydowns: Builders may pay to lower your mortgage rate, reducing monthly payments and increasing affordability.
You do not have to be lucky to take advantage of these perks. Most builders are offering incentives like these right now. The National Association of Homebuilders (NAHB) reports that 65 percent of builders are using some type of sales incentive and notes:
“. . . 41 percent of builders reported cutting prices in November, a record high in the post-Covid period and the first time this measure has passed 40 percent.”
This is significant because it shows how willing builders are to negotiate right now.
If you examine the graph, you will see that incentives usually decrease in the early part of the year as buyer demand rises heading into spring. Acting now gives you an advantage. This may be the ideal window to access the most options and the best prices.
By working closely with your agent and being strategic about the incentives you request, you could secure some of the most valuable perks buyers have seen in years. Every dollar counts, and any incentive that improves your bottom line is worth considering.
More options and greater savings equal an offer that is hard to pass up.
Bottom Line
With many builders offering generous incentives and a wider selection of new homes, buyers may be seeing one of the best opportunities in years to purchase a new build.
Let’s connect if you want to learn which communities, builders, and incentives offer the most value today. Working with your own agent, rather than the builder’s representative, makes the buying and negotiation process much easier and ensures your interests are prioritized.
