Making the Case for a New Build Home

Are you delaying your plans to sell because you're concerned about finding a home you like when you move? If so, it may be time to consider a newly built home and the benefits that come with it. Here's why.

A Remarkable Percentage of Recently Listed Home Inventory

The role of newly constructed homes is growing as a notable segment within the current housing inventory. As per the latest report from the National Association of Home Builders (NAHB):

“In November, the proportion of newly constructed homes for sale constituted 31% of the total available homes for sale, a significant increase from the historical average of around 12%.”

This implies that the share of newly constructed homes among the total homes available for purchase is more than double the usual rate. Additionally, there are even more new homes in the pipeline.

The latest information from the Census indicates a rise in both housing starts (instances where builders commence construction on new homes) and housing completions (homes where construction has recently concluded).

While some may have concerns about builders constructing an excess of homes, there's no need to worry. If anything, the recent increase is genuinely good news, as explained by Lawrence Yun, Chief Economist at the National Association of Realtors (NAR).

Additional home construction is essential as the housing shortage continues in most markets. A further 30% increase in home construction can be readily accommodated in the marketplace.

The Benefits for You

As the current supply of existing homes for sale remains limited, the rise in new home construction can be a game-changer, offering you more choices in your search.

Envision yourself in a brand-new home, complete from the ground up: modern appliances, freshly painted walls, minimal maintenance requirements, and numerous other benefits. Doesn't that sound appealing?

And it might be more achievable than you've ever thought. Furthermore, certain builders are providing incentives such as mortgage rate buy-downs for homebuyers at the moment. This can alleviate the current affordability challenges and bring you closer to your dream home. Patrick Duffy, Senior Real Estate Economist at U.S. News, elaborates in a recent article:

"For many years, builders have employed mortgage interest rate buydowns as a sales incentive, especially during periods of relatively high interest rates. Nowadays, an increasing number of builders are extending rate buydowns for the entire loan duration, enabling buyers to finance a larger home while maintaining the same payment amount."

Keep in mind that purchasing from a builder involves a distinct process compared to buying from a home seller. It is crucial to collaborate with a reliable real estate agent familiar with the local market. They will serve as your primary source for liaising with the builder, reviewing contracts, and more.

Bottom Line

If you're looking to sell your home and facing challenges finding a suitable new one, reach out to a local real estate agent. They can assist you in exploring all your options, including newly constructed homes in the area.