In the quest for a home this spring, you’re likely grappling with the realities of today’s affordability hurdles and the scarcity of homes for sale. But what if there was a remedy that addressed both challenges?
Enter newly built homes. If you’re encountering difficulties in finding your dream home amidst rising mortgage rates, here’s why exploring newly constructed properties could be your saving grace.
New Home Construction: A Bright Spot in Inventory
In your home search, you have the option of choosing between existing homes and newly built ones. While the inventory of existing homes has seen a slight uptick this year, it still falls short of the levels witnessed in more typical housing market years like 2018 or 2019.
Turning your attention to newly built homes expands your pool of options. As Danielle Hale, Chief Economist at Realtor.com, points out, the shortage of existing homes has prompted more buyers to consider new-home construction—an avenue they may not have explored previously.
Moreover, the availability of newly built homes is on the rise. Recent data from the Census illustrates a notable increase in both housing starts and completions, presenting buyers with a wealth of move-in ready options or the opportunity to customize their build from the ground up.
Builder Incentives Alleviating Affordability Pressures
Builders are sweetening the deal by offering incentives such as mortgage rate buy-downs and other perks to prospective homebuyers. This not only helps mitigate today’s affordability challenges but also facilitates the realization of homeownership dreams. Mark Fleming, Chief Economist at First American, explains why builders may be more flexible in their offerings compared to traditional homeowners:
“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.”
According to HousingWire, the momentum behind sales incentives remains strong, with a significant percentage of builders utilizing them to attract buyers.
Navigating the Process with Expert Guidance
Buying from a builder entails a different set of considerations compared to purchasing from a traditional homeowner. Partnering with a local real estate agent is essential, as they serve as your advocate throughout the process. From navigating complex builder contracts to providing insights on construction quality and negotiating the best deal, a trusted agent offers invaluable support at every step.
In Conclusion
If you’re grappling with the challenges of finding a home amidst today’s market dynamics, consider exploring newly built homes with the guidance of a local real estate agent. With an array of options and builder incentives at your disposal, homeownership may be more attainable than you think.