When planning a move, a newly built home might not be the first option that comes to mind. However, with a growing number of brand-new homes on the market and builders focusing on smaller, more affordable options, this type of property could be the perfect solution to help you achieve your homeownership goals.
Here’s why considering a new build could be the right choice—and how a real estate agent can guide you in finding one that fits both your needs and your budget.
1. An Increased Selection of Newly Built Homes Let’s start by exploring the types of homes available. A newly built home refers to one that has just been completed or is currently under construction. In contrast, an existing home is one that has been previously owned.
Currently, the inventory of existing homes is still limited. If you’ve been struggling to find the right fit due to a lack of available properties, broadening your search to include newly built homes can significantly expand your options. There’s a larger selection of new builds on the market now than in a typical year (see graph below):
The Rise of Newly Built Homes: What You Need to Know
From 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has nearly doubled to 28.8%, according to the latest data.
As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), points out:
“Even though existing home sales have remained at low levels, newly constructed home sales are on track to achieve their best performance in 15 years. New home inventory has been steadily rising, with homebuilders now making up about one-third of the total market.”
This increase in new construction is certainly promising, but it’s important to note that builders aren’t overextending themselves. They’re simply making up for a decade of underbuilding. The market still has more buyers than available homes. The good news for you is that this surge in new homes means more options when it comes to your home search.
2. Newly Built Homes Are More Affordable Than You Think
Wondering if a newly built home fits your budget? The average cost of newly constructed homes has actually decreased compared to last year.
Why? Builders are focused on affordability, knowing it’s a top priority for buyers. As a result, they’re prioritizing smaller homes that can be sold at lower price points. As Realtor.com highlights:
“Builders are increasingly offering smaller, more affordable homes, meaning buyers are likely to find newly built homes within their budget.”
Keep in mind that buying a new home differs from purchasing an existing one. Builder contracts can have unique stipulations, so it’s essential to work with a local agent who understands the market, builder reputations, and the fine print in these contracts.
Bottom Line
Whether you’re seeking a home that matches your needs or your budget, a newly built home could be the perfect opportunity to make your homebuying dreams come true. If you’re interested in exploring the latest offerings in your area, let’s connect and see what builders have to offer.
