If you’re someone that’s postponing selling your home because of low inventory fears, or one that’s delaying buying a home because of interest rate fears, new construction may be the answer for both!
According to an article by Keeping Current Matters:
“Newly built homes are becoming an increasingly significant part of today’s housing inventory. According to the most recent report from the National Association of Home Builders (NAHB):
Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average.”
That means the percentage of the total homes available to buy that are newly built is well over two times higher than the norm. And even more new homes are on the way.
Recent data from the Census shows there’s been an uptick in both housing starts (where builders break ground on more new homes) and housing completions (homes where construction just wrapped).
And while some people may worry builders are building too many homes, that isn’t a concern – if anything, the recent increase is really good news. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:
“Even more home building will be needed with the housing shortage persisting in most markets . . . Another 30% rise in home construction can easily be absorbed in the marketplace . . .”” 1
Across zip code 75189 at the time of this article, there were 143 new construction homes listed in the MLS, but there were almost 100 more that were either planned (not yet started) or under construction (not yet finished). 2
In addition, builders are offering incentives to buyers in the form of free upgrades, reduced closing costs, and mortgage rate buy-downs. In a recent article, Patrick Duffy, Senior Real Estate Economist at U.S. News, explains:
“Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high, . . .Today more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more home for the same payment amount.” 3
Just remember, the process of buying from a builder is different from buying from a home seller, so it’s important to partner with a trusted real estate agent who knows the local market. They’ll be your go-to resource for coordinating with the builder, reviewing contracts, and more. 4
Whether you’d like to sell but have fears about finding another home you’ll like, or you’re a buyer with inventory or interest rate apprehensions, connect with me to explore all of your options, including the newly built homes in the area. 📱🤙📧