It may be difficult for you to find suitable existing homes for sale. It happens mainly because buyers are still having problems with affordability. So if this applies to you, it might be time to consider new construction. And you might discover that a newly built home may cost less than you expect.
New Homes Cost Less
According to NAHB and Wells Fargo Housing Market Index (HMI), 59% of single-family home builders offered special sale incentives. While 36% reported lowering their prices. Additionally, more newly constructed homes are being sold in lower price ranges in this country than in 2022, per the most recent Census data. This indicates that more people are currently buying less expensive newly constructed homes.
Additionally, home builders have more margin built into their financial model. This enables them to grant homebuyers larger concessions. Builders are also lowering mortgage rates to avoid price reductions.
“We’ve seen a few quarters of stagnation while consumers have been waiting” for rates to drop… And now we’re seeing green shoots of that — they’re beginning to get back into the market.” – Jason Will, Senior Vice President of Market Growth at Embrace Home Loans
What’s Next For You
Builders are now giving more affordable newly-built home options. And this is the perfect time for you to take advantage of that. It may be beneficial for you if you are a first-time buyer, who typically have smaller housing budgets than move-up buyers. You can start to shop in neighborhoods where new homes or condominiums are being built. Believe it or not, some builders actively seek out first time homebuyers. In this housing market, you can find the best deals with new construction.
The Bottom Line
You can spend less money if you know how new-construction deals differ from existing-home sales. In an effort to meet lower price points, builders are successfully responding to the housing market shift by releasing slightly smaller homes on the market. If you plan to buy a home soon, work with a local expert to research the options in your area.
What To Do:
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