Interested in buying a new home? With the current shortage of housing inventory, you may want to think outside of what’s previously owned and look for possibilities that are newly built. From custom design options to fresh fixtures throughout, there’s plenty sure to catch your eye!
The Number of Newly Built Homes Is on the Rise
Homeowners eager to list their property have an advantage right now – there is still a relatively low inventory of homes on the market. This isn’t because people aren’t selling; it’s due to years of underbuilding, which means that new housing hasn’t been built fast enough in comparison to demand.
Despite a lingering decline, the construction of newly built homes is showing signs of an upward trend. In fact, in just the past 14 years, this number has been steadily increasing – representing hope for future growth and development! As Mark Fleming, Chief Economist at First American, shares, that’s good news for buyers:
“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise, and a new home at the right price is a pretty good substitute.”
Builder Incentives Can Provide a Boost
As the housing market grows, builders are taking a step back to sell their current inventory before adding more homes for sale. According to Logan Mohtashami, Lead Analyst at HousingWire:
“The builders must work off the backlog of homes, but instead of 3%-4% mortgage rates, they must deal with 6%+ mortgage rates, which means they must provide numerous incentives to ensure those homes sell.”
Many builders are now offering incentives to help buyers purchase these homes. Fleming also explains:
“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for buyers and price reductions, which could entice potential home buyers.”
A builder willing to pay to lower your mortgage interest rate could be a game changer. Ksenia Potapov, Economist at First American, puts it this way:
“A one percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”
Should You Buy a Brand-New Home?
Finding the perfect home for your family can be a daunting task without expert help. A real estate professional is an invaluable resource when it comes to comparing and contrasting options, as they are familiar with houses in the area and any promotional offers that may benefit you.
Are you in the market for a new home? With fresh inventory on the rise and builders offering enticing incentives, now’s an ideal time to explore whether purchasing a newly constructed abode is right for you. Let’s connect so that we can provide expert guidance and weigh your options of buying vs. building!