Unveiling the Rise of Newly Built Homes: Is Now the Perfect Time to Buy?
In a world where the housing market can be a challenging place, one might consider all their options before deciding on a home. And that includes a home that’s newly built.
While there may be a greater number of previously owned homes available for purchase today, the historically low number of homes on the market is causing buyers to look at newly built homes. It seems that years of underbuilding have led to a decrease in the number of homes available for purchase.
However, there is good news on the horizon. The graph above shows that the number of new homes being built each year is on the rise. Mark Fleming, Chief Economist at First American, shares his insight that a new home at the right price is a pretty good substitute for the limited availability of existing homes.
Although builders are slowing the pace of constructing new homes until they sell more of their current inventory, many are offering incentives to encourage buyers to make a purchase. The National Association of Home Builders reports that nearly two-thirds of builders are providing incentives to potential home buyers, including mortgage rate buydowns, paying points for buyers, and price reductions.
Ksenia Potapov, Economist at First American, emphasizes the impact a decline in mortgage rates can have on affordability, equating a one percentage-point decline in mortgage rates to an 11 percent decline in house prices.
To determine which option is best for you, it is recommended to work with a trusted real estate professional. They can help you understand which homes are available in your local market and which builders might be offering incentives that make sense for you.
In conclusion, the limited availability of existing homes may lead you to consider a newly built home. With the number of new homes on the rise and builders providing incentives to potential home buyers, it may be the right choice for you.
If you're considering the purchase of a newly built home, reach out to Robb Luxury Home Group to get expert guidance on the best options available in the market.