A Newly Built Home May Actually Be More Budget-Friendly

<article class="post-1132392 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1132392"><span class="entry-date">July 24, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">A Newly Built Home May Actually Be More Budget-Friendly</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=A+Newly+Built+Home+May+Actually+Be+More+Budget-Friendly&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fa-newly-built-home-may-actually-be-more-budget-friendly%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="A Newly Built Home May Actually Be More Budget-Friendly Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240724-A-Newly-Built-Home-May-Actually-Be-More-Budget-Friendly-original.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>If you’re in the market to <a href="https://www.simplifyingthemarket.com/2024/07/18/unlocking-homebuyer-opportunities-in-2024/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buy a home</a>, there’s some exciting news for you. Many people assume that newly built homes are more expensive than existing ones (houses that have already been lived in), but that’s not always the case. In fact, exploring newly built homes can sometimes lead to more cost-effective options, especially today. Hard to believe, right? But the data doesn’t lie.</p>
<p>Here are two key reasons working with your agent to look into new home construction could help you find a more budget-friendly option.</p>
<h4><strong>Reason 1: Lower Median Prices for Newly Built Homes</strong></h4>
<p>The median sales price for newly built homes is lower than the median sales price for existing homes today. This might seem surprising, but it’s true according to the latest data from the <a href="https://www.census.gov/construction/nrs/current/index.html" rel="noopener noreferrer" target="_blank"><em>Census</em></a><em> </em>and the <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank"><em>National Association of Realtors</em></a> (NAR):<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240722/20240724-The-Median-Price-for-New-Homes-Is-Coming-Down-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240722/20240724-The-Median-Price-for-New-Homes-Is-Coming-Down-original.png"/></a></p>
<p>Why is that? Builders are focused on building what they can sell. And right now, there’s a very real need for <a href="https://www.simplifyingthemarket.com/2024/05/03/builders-are-building-smaller-homes-infographic-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">smaller</a> and more affordable homes – so that’s what they’ve been bringing to the market. At the same time, there are also more newly built homes already on the market than there have been over the past few years, so <a href="https://www.simplifyingthemarket.com/2024/07/08/not-a-crash-3-graphs-that-show-how-todays-inventory-differs-from-2008/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">builders</a> are motivated to make sure they’re selling what they’ve got available before adding more.</p>
<h4><strong>Reason 2: Attractive Incentives from Home Builders</strong></h4>
<p>Another big reason to consider a newly built home is the range of incentives that many home builders are offering. Again, since builders are aiming to sell their current inventory, some are providing special deals to sweeten the pot for <a href="https://www.simplifyingthemarket.com/2024/07/16/how-to-determine-if-youre-ready-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homebuyers</a>. <em>HousingWire </em><a href="https://www.housingwire.com/articles/housing-starts-dropped-19-3-in-may-as-builder-confidence-continues-to-slide/" rel="noopener noreferrer" target="_blank">explains</a> today’s trend:</p>
<blockquote><p><em>“Overall, the usage of sales incentives was up to 61% in June, compared to 59% in May.”</em></p></blockquote>
<p>One of the most appealing incentives right now is how builders are able to offer competitive mortgage rates. They may also provide other incentives, such as covering <a href="https://www.simplifyingthemarket.com/2024/03/25/what-every-homebuyer-should-know-about-closing-costs/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">closing costs</a>, or offering free upgrades.</p>
<h4><strong>Why This Matters to You</strong></h4>
<p>Considering a newly built home could open up opportunities you hadn’t thought of before. With competitive pricing and attractive incentives, you might just find that a brand-new home is the most appealing option for you.</p>
<h3>Bottom Line</h3>
<p><a href="https://www.simplifyingthemarket.com/2024/05/30/the-biggest-mistakes-buyers-are-making-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">Buying a home</a> is a big decision, and it’s essential to consider all your options. By looking into newly built homes, you might find a perfect fit for your needs and your budget.</p>
<p>Let’s explore the possibilities together. If you have any questions or want to see what’s available, reach out to a local real estate agent.</p>
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