If you put a pause on your home search because you weren't sure where you'd go once you sold your house, it might be a good time to get back into the market. If you're willing to work with a trusted agent to consider a newly built home, you may have even more options and incentives than you realize. That may be why the National Association of Home Builders (NAHB) says the share of buyers looking for new construction is increasing:
According to the quarterly Housing Trends Report, the popularity of new construction homes is continuing to rebound . . .
Heres a few reasons more buyers may be drawn to newly built homes.
When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the inventory of existing homes has increased this year, its still below more typical years like 2019. Currently, according to the National Association of Realtors (NAR), there is a 3.2-month supply at the current sales pace. For reference, a roughly 6-month supply is considered a balanced market, leaving us in a sellers market today.
While its a smaller segment of the overall inventory of homes for sale, the supply of newly built homes has grown even more. The National Association of Home Builders (NAHB) explains:
New single-family home inventory remained elevated at a 9.2 months supply (of varying stages of construction). A measure near a 6 months supply is considered balanced.
Here's why this matters for you. While you have more homes to choose from in either category, there's one extra benefit of newly built homes. Because the inventory of newly built homes has grown so much, builders are motivated to sell their properties before they build more.
Back in the housing crash of 2008, builders were building too many homes, and that oversupply is part of what contributed to the housing bubble bursting. Now, builders don't want to have a surplus of inventory in their pipeline, and many are offering buyers incentives to help move that inventory along. As Doug Duncan, Chief Economist at Fannie Mae, explains:
. . . a continual increase in the number of completed homes available for sale is now occurring, with the inventories of such homes now at the highest level since July 2020. . . . This suggests to us that builders may be increasingly willing to offer more aggressive incentives and discounts to maintain sales of completed inventory.
While specifics will vary by builder and market, some buyers are seeing builders reduce prices and offer incentives. To find out what's available in your area, lean on a trusted real estate professional.
In addition to more supply and the potential for builder incentives, newly built homes have various benefits that may suit your lifestyle. For example, you likely wont have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. That can free up time for you to do other things youre passionate about.
Another perk of a new home is that nothing in the house is used. Its brand new and uniquely yours from day one. Youll have all new appliances, windows, roofing, and more. These things can help lower your energy costs, which can add up to significant savings over time. You may even have the latest and greatest technology features built into your new home.
Builder sums up why some buyers today are turning to newly built homes:
For some, its the lure of something new and modern. For others, its the move-in ready experience. And now there's another factor to consider when making this decision: technology.
If any of these benefits appeal to you, its time to connect with a trusted real estate advisor to learn more.
If you're considering a newly built home, lets connect so you have an expert guide on what's available in our local market. Together well explore your options and the benefits of an all-new home.
Content previously posted on Keeping Current Matters