The Top 2 Reasons To Look at Newly Built Homes

The Top 2 Reasons To Look at Newly Built Homes

When considering a move, a newly built home might not initially be at the forefront of your thoughts. However, with an increase in the availability of brand-new homes and builders concentrating on smaller, more affordable options, this type of home could be crucial in successfully completing your homebuying journey.

Here's why a new build is worth considering—and how a real estate agent can assist you in finding one that aligns with both your needs and your budget.

1. More Newly Built Homes Are Available Right Now

First, let's distinguish between the types of homes available on the market. A newly built home is one that has just been constructed or is still under construction. Conversely, an existing home has previously been lived in by another homeowner.

Currently, the inventory of existing homes for sale remains low. If you're finding it challenging to locate a home you like due to the limited number of existing homes available, considering brand-new homes could significantly broaden your choices. This is especially relevant now, as there are more newly built homes on the market than usual (see graph below):

From 1983 to 2019, newly built homes comprised only 13% of the total inventory of homes for sale. Today, that figure has risen to 28.8%, according to the most recent data.

As Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), observes:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.” 

While the increase in new home construction is a positive development, it's important to note that builders are not overextending themselves; they are merely compensating for more than a decade of underbuilding. The market still features significantly more buyers than available homes. However, the silver lining for you is that this rise in newly built homes provides more options for your search.

2. Newly Built Homes Are Becoming Less Expensive

If you're still unsure whether a new build fits your needs or budget, consider this: the average cost of newly built homes has decreased from a year ago. 

This shift is due to builders recognizing that affordability is a critical concern for homebuyers currently. Consequently, they are concentrating on constructing smaller homes that can be offered at more accessible price points and are more likely to sell quickly. As noted by Realtor.com:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.” 

It’s important to remember that purchasing a newly built home differs from buying an existing one. Builder contracts often contain unique stipulations and fine print. Therefore, it's crucial to work with a local real estate agent who is familiar with the market, understands builder reputations, and knows what to look for in those contracts.

Bottom Line

Depending on your specific needs and budget, a new build could be the perfect opportunity to realize your homebuying dreams. If you're considering a brand-new home, let's connect so you can explore what builders in your area are offering.