2 Reasons You Should Consider a Newly Built Home

When planning a move, it's natural to wonder where you’ll end up and what your future home will look like. You might have a specific picture in mind. However, unless you already decided on a newly built home, this option might not have been on your radar.

Here are two compelling reasons to reconsider newly built homes, with the guidance of a trusted real estate agent.

1. Expanding Your Options with Newly Built Homes

There are two types of homes on the market: new and existing. Newly built homes refer to houses that are either just built or still under construction. In contrast, existing homes have been previously lived in. Currently, the inventory of existing homes is limited, but there might be more options available among new homes.

Data from the Census Bureau and the National Association of Realtors (NAR) indicate that newly built homes now constitute a larger share of the housing inventory than usual (see graph below):

From 1983 to 2019, newly built homes accounted for only 13% of the total homes for sale. Today, that figure has risen to over 33%.

Rest assured, even with more new construction, there’s still an overall housing shortage. However, the increase in new builds could be a game changer for your search, providing you with more options.

2. Affordability of Newly Built Homes

If you’ve previously dismissed newly built homes as being out of your budget, it’s time to reconsider. The price gap between new and existing homes is shrinking. Here’s why.

Builders are responding to current demands by constructing more affordable, smaller homes. This shift is reflected in the graph below, which shows the narrowing price difference between new and existing homes:

According to LendingTree:

“In the past, newly built homes have been much more expensive than existing homes — but that gap has been getting smaller recently. In some places today, you may find that the cost to build versus buy is roughly the same.”

CNBC also notes:

“While new builds are still sold for slightly more than existing homes, the price gap has significantly narrowed . . .”

Additionally, some builders are offering price cuts and mortgage rate buy-downs to attract buyers. With these incentives, considering new builds might be more beneficial than ever. As Freddie Mac states:

“As the supply of existing homes for sale remains low and home prices continue to rise, more buyers are choosing to purchase new homes than in previous years.”

It’s important to remember that buying a newly built home differs from buying an existing one. Builder contracts have unique details, so partnering with a local agent who knows the market, builder reputations, and contract specifics is crucial.

Bottom Line

If you’re curious about what builders are offering in your area, connect with a real estate agent. Expanding your search to include new builds and nearby towns could provide you with more options. Reach out to us at Pouliot Real Estate to explore the potential of newly built homes in your search.

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