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Is it Time to Expand Your Search to Newly Built Homes?

Friday, November 18, 2022   /   by Laura Larson

Is it Time to Expand Your Search to Newly Built Homes?

The fall can be a good time to resume your home hunt if you put it on hold because you weren't sure where you'd go after selling your home. For instance, you might have more alternatives and incentives available to you than you think if you're prepared to consider buying a newly constructed house with the help of a reliable agent. According to the Quarterly Housing Trends Report, "the popularity of new construction homes is continuing to rebound...”

More options and builder incentives.
You have the option of buying a new construction or an existing one (one that has already been built and owned by someone else). Despite an increase this year, the supply of existing homes is still less than in 2019, which is considered more normal. There is currently 3.2 months' worth of inventory at the current sales rate, according to the National Association of Realtors (NAR), which reinforces the idea that we are still in a sellers' market since a balanced market has an approximate 6-month supply.

The supply of newly built homes has increased even though it represents a smaller portion of the overall inventory of homes for sale. According to the National Association of Home Builders (NAHB), “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.”

Although there are more homes available in each category, freshly constructed homes have an additional advantage. Builders are driven to sell their homes before they start on new ones since the inventory of recently constructed homes has risen significantly. Builders built too many homes prior to the 2008 housing catastrophe, which is one of the factors that led to the housing bubble bursting. Builders are now trying to move their inventory along because they don't want to have an excess of it in their pipeline. According to Doug Duncan, the chief economist at Fannie Mae: “... 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.”

Although these incentives depend on the builders and the market, anecdotal data indicate that some purchasers are getting price reductions and incentives from builders. Contact Laura Larson to learn what's available in your region.

Advantages of a new construction
Newly constructed homes have a number of advantages that may fit your lifestyle, in addition to increased supply and the potential for builder incentives. You probably won't need to deal with as many minor repairs, such as leaking faucets, painted shutters, and other small tasks around the house. You could use that time to pursue other interests

One advantage of a brand-new house is that it is empty. It has always been wholly and newly yours. You'll enjoy brand-new windows, roofing, and other amenities. Your energy expenditures can be decreased by using technology, which over time could result in sizable savings.

Why some purchasers are choosing newly built houses today? as summarized by builders: “For some, it’s the lure of something new and modern. For others, it’s the move-in-ready experience. And now there’s another factor to consider when making this decision: technology.” If any of these advantages caught your interest, it's time to get in touch with a reputable realtor like Laura Larson to find out more.

Bottom line
Working with Laura Larson is essential if you're considering buying a freshly constructed property, remember the importance of being properly represented when you are going into one of your most important purchases of a lifetime. Laura can help you to explore your options, recommend reputable builders, and explain the advantages and disadvantages of a brand-new house.