From Your President of the Pee Dee REALTOR ® Association Amy McCalman Kirby
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 .
New Home Construction Is an Inventory Bright Spot
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 .
Builders Are Offering Incentives To Help with Affordability
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 REALTOR . Builder contracts can be complex . A trusted REALTOR 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 , connect with a REALTOR to see if newly built homes could be the solution you ’ re looking for .
8 - REAL ESTATE WEEKLY www . peedeerealestateweekly . com Equal Housing Opportunity