Considering a Move? Here’s Why You Should Think About Newly Built Homes
When planning a move, it’s normal to wonder where you’ll end up and what your future home will look like. You might have a specific vision in mind, but unless you started out knowing you want a newly built home, you may not have considered new home construction. Here are two reasons you might want to reconsider:
1. Adding Newly Built Homes Could Give You More Options
There are two types of homes on the market: new and existing. A newly built home refers to a house that was just constructed or is under construction. An existing home is one a previous homeowner has lived in. Currently, the inventory of existing homes is tight, but there may be more options for you among new homes.
Data from the Census Bureau and the National Association of Realtors (NAR) shows that newly built homes make up a larger part of today’s housing inventory than usual. From 1983 to 2019 (the last normal year in the market), newly built homes constituted only 13% of the total inventory of homes for sale. Today, that number has climbed to over 33%.
Rest assured, despite an increase in new construction, there’s still a significant housing shortage overall. But for you, the uptick in new builds means more options in your home search.
2. Newly Built Homes May Be More Affordable Than You Think
You might wonder if a new build could really be an option for you, especially if you’ve previously dismissed them as too expensive. However, the price gap between newly built homes and existing homes is shrinking. Here’s why.
Builders are responding to current market demands, focusing on constructing smaller, potentially more affordable homes.
“In the past, newly built homes have been much more expensive than existing homes, but that gap has been getting smaller recently. In some places today, the cost to build versus buy is roughly the same.”
An article from CNBC supports this:
“While new builds are still sold for slightly more than existing homes, the price gap has significantly narrowed.”
Moreover, some builders are offering price cuts and mortgage rate buy-downs to make new homes more attractive. There are many reasons why new builds may be worth considering today. As Freddie Mac notes:
“As the supply of existing homes for sale remains low and home prices continue to rise, more buyers are choosing to purchase new homes than in previous years.”
However, buying a newly built home isn’t the same as buying an existing one. Builder contracts come with different fine print. Partnering with a local real estate agent who knows the market, builder reputations, and contract details ensures you have an expert on your side.
If you want to find out what builders are doing in your area, connect with a real estate agent. If you’re open to expanding your search to nearby towns, your agent can help you explore even more options.
