Newly Built Homes Could Be a Game Changer This Spring!

Buying a home this spring? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both?

If you’re having a hard time finding a home you love, and mortgage rates are putting pressure on your budget, it may be time to look at newly built homes. Here’s why.

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 number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019.

So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:

“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”

And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green):

Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.

And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:

“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”

An article from HousingWire also says this about what builders are offering right now:

 ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. "

Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate throughout the process.

They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more.

Bottom Line

If you’re struggling to find a home to buy, or with today’s affordability challenges, let’s connect to see if newly built homes could be the solution you’re looking for.

Buy for less.
Sell for more.

Don't get stuck with the wrong agent.

As a Relocation Specialist with Realty Connect, I belong to an nationwide network of over 25,000 top-rated agents serving every zip code in all 50 states. Instead of helping you buy or sell a home personally, I help match my clients with up to 3 great agents who specialize in your market. The best part? This is a 100% FREE service, so there is no cost, pressure or obligation! With my experience and connections, I can quickly help you find the perfect agent better than what most people are able to do on their own.

Top 5 Reasons To Hire an Agent When Buying a Home [INFOGRAPHIC]

Some Highlights

• Hiring an agent when buying a home helps you understand the buying process and the local market.
• They’ll also go over contracts and fine print with you, so you understand what you're agreeing to. Plus, they're good at negotiating, making sure you get the best deal.
• Expert advice from a trusted real estate professional is priceless. Let’s connect today.