The Thrilling Surge in New Home Construction: Why You Should Consider Buying One
The Exciting Upsurge in New Home Construction
In recent years, a lack of available inventory and intense competition among purchasers have made the real estate market a rollercoaster. The number of newly constructed homes is increasing, offering exciting options for potential homeowners, so some good news is on the horizon. The present housing market, under-building effects, and the benefits of purchasing a brand-new home with attractive incentives provided by builders are the way to go.
The latest info from the U.S. Census shows good news for people looking for new homes. In the first three months of this year:
More new homes were finished and are now available for sale, giving you more options for homes ready to move into.
Builders started constructing more single-family homes. This means more homes are being built for just one family, and you can customize them however you like.
The number of permits issued for building single-family homes increased, so builders are getting ready to build even more homes soon.
All of this is great news if you're looking for a new home, but there are also other benefits to think about if you're considering a brand-new home.
Pros and Cons of Purchasing A New Construction Home
Suppose you're in the market to purchase a home and wondering about the benefits and drawbacks of new construction versus existing homes. Here are a few things to keep in mind:
One advantage of buying a new construction home is that you may need fewer repairs and pay lower maintenance costs. However, unexpected defects can still occur, which is where a home warranty can come in handy. By paying a regular fee, you can have peace of mind knowing that any covered defects, repairs, or replacements will be taken care of.
On the other hand, new construction typically comes with a higher price tag and longer wait times. If you're hurrying to move or have a specific deadline, an existing home might be a better option. Additionally, remember that property taxes may be higher for new construction since they're often based on the home's value and assessed after the sale.
Ultimately, deciding between new construction and existing homes will depend on your circumstances and preferences. By weighing the pros and cons and researching, you can make an informed choice that meets your needs and budget.
Customize to Your Liking
Bank rate states; When you buy a new home under construction, you can tailor it to your unique needs and taste.
“Building means customizing. . . . instead of wishing your home had a certain kind of flooring, a sunroom or some other special amenity, you’ll be able to tailor the property to your exact needs.”
The Housing Market: A Tale of Under-building
HousingWire states:
“The builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they’re dealing with 6% plus mortgage rates, which means they have to provide many incentives to ensure those homes sell.”
As Mark Fleming, Chief Economist at First American, shares, that’s good news for buyers:
“While existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is rising, and a new home at the right price is a pretty good substitute.”
Fleming also added:
“The National Association of Home Builders reported that nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for buyers and price reductions, which could entice potential home buyers.”
A builder who is prepared to pay to lower your mortgage rate could completely change the situation. According to First American economist Ksenia Potapov,
“A one-percentage-point decline in mortgage rates has the same impact on affordability as an 11 percent decline in house prices.”
The Real Estate Market: Choosing between a brand-new home and an existing home
You might be trying to decide whether purchasing a newly constructed home is the best course for you, given the rise in the supply of new homes and the alluring incentives builders provide. Working with a reputable real estate expert who can assist you in weighing the advantages and disadvantages of each option is essential if you want to make an educated decision. Working with us, you will discover off-market exclusive homes currently under construction. Take advantage of the opportunity to personalize these properties to your preferences and incorporate your essential features. Enjoy the benefits of a brand-new residence, free from maintenance concerns and potential breakdowns. Most importantly, take advantage of builder incentives. We can show you how.
Seize The Opportunity
Brand new home
Minimal repairs
Energy efficient
Despite the current shortage of available homes, the increase in new house development and the attractive incentives provided by builders offers a unique chance for prospective purchasers. What builders may offer:
Upgrades and options: Builders may offer free or discounted finishes, fixtures, or appliance promotions. This can include upgraded countertops, flooring, cabinetry, lighting, and energy-efficient or innovative home features.
Closing cost assistance: To ease the financial burden on buyers, builders might cover some or all the closing costs associated with purchasing the home. This can include title fees, appraisal fees, and other related expenses.
Mortgage rate buydowns: In this incentive, the builder pays a portion of the mortgage interest rate, lowering the buyer's monthly mortgage payment. This can make a significant difference in affordability for the homeowner.
Paying points for buyers: Builders may offer to spend points on the buyer's mortgage, which are fees paid upfront to reduce the interest rate on the loan. This can result in lower monthly payments for the buyer.
Price reductions: In some cases, builders may offer direct discounts on the home's sales price. This can be a flat amount or a percentage of the total cost.
Design center credits: Builders might give buyers a credit to spend at their design center, allowing them to customize their new home with a selection of finishes, fixtures, and other design elements.
Appliance packages: As an incentive, builders may include a complete set of kitchen appliances, a washer, a dryer, or other appliances at no additional cost or a discounted rate.
Extended warranties: Some builders may offer extended warranties on the home or its systems and appliances, providing additional peace of mind to the buyer.
HOA fee coverage: In communities with homeowners associations (HOAs), builders may offer to cover a portion or all of the HOA fees for a specific period, such as the first year of ownership.
Leaseback opportunities: In some cases, builders may offer to lease the newly constructed home from the buyer for a set period, allowing the builder to use the property as a model home or sales office. This can provide the buyer with a guaranteed rental income for the duration of the leaseback agreement.
In conclusion, the housing market is continually changing, and the rise in the supply of new homes is encouraging for buyers. So if you're considering buying a house, don't hesitate to contact us to discuss your alternatives. Take advantage of this excellent chance to find the ideal residence for you and your family!