Newly Built Homes Could Be a Game Changer This Spring

<article class="post-993459 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-993459"><span class="entry-date">April 3, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Newly Built Homes Could Be a Game Changer This Spring</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=Newly+Built+Homes+Could+Be+a+Game+Changer+This+Spring&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fnewly-built-homes-could-be-a-game-changer-this-spring%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="Newly Built Homes Could Be a Game Changer This Spring Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240403-Newly-Built-Homes-Could-Be-a-Game-Changer-This-Spring.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p><a href="https://www.simplifyingthemarket.com/2024/03/18/4-tips-to-make-your-strongest-offer-on-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">Buying</a> a home this <a href="https://www.simplifyingthemarket.com/2024/03/21/what-are-experts-saying-about-the-spring-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">spring</a>? You’re probably navigating today’s affordability challenges and dealing with the limited number of homes for sale. But, what if there was a solution that could help with both?</p>
<p>If you’re having a hard time finding a <a href="https://www.simplifyingthemarket.com/2024/03/11/finding-your-perfect-home-in-a-fixer-upper/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home you love</a>, and <a href="https://www.simplifyingthemarket.com/2024/03/12/what-mortgage-rate-do-you-need-to-move/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> are putting pressure on your budget, it may be time to look at newly built homes. Here’s why.</p>
<h4><strong>New Home Construction Is an Inventory Bright Spot</strong></h4>
<p>When <a href="https://www.simplifyingthemarket.com/2024/03/20/does-it-make-sense-to-buy-a-home-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">looking for a home</a>, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has <a href="https://www.simplifyingthemarket.com/2024/3/28/is-it-easier-to-find-a-home-to-buy-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">increased</a> this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019.</p>
<p>So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at <em>Realtor.com</em>, <a href="https://www.nar.realtor/magazine/real-estate-news/new-home-construction-is-expected-to-grow-in-2024" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”</em></p></blockquote>
<p>And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" rel="noopener noreferrer" target="_blank"><em>Census</em></a> to show how new home construction is ramping up in two key areas (<em>see most recent spike in green</em>):</p>
<p> <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240327/20240328-Number-of-Homes-For-Sale.png" rel="noopener noreferrer" target="_blank"><img alt="a graph of a number of homes for sale" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240327/20240328-Number-of-Homes-For-Sale.png"/></a></p>
<p></p>
<p>Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.</p>
<h4><strong>Builders Are Offering Incentives To Help with Affordability</strong></h4>
<p>And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s <a href="https://www.simplifyingthemarket.com/2024/02/23/how-changing-mortgage-rates-impact-you-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">affordability</a> challenges while also getting you into your dream home. Mark Fleming, Chief Economist at <em>First American,</em> <a href="https://blog.firstam.com/reconomy-podcast/whats-the-outlook-for-the-2024-spring-home-buying-season" rel="noopener noreferrer" target="_blank">explains</a> why you may find builders have more wiggle room to offer more for you than the typical homeowner:</p>
<blockquote><p><em>“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. </em><strong><em>And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, </em></strong><em>so that will help the new-home market continue to perform well in the spring home-buying season.”</em></p></blockquote>
<p>An article from <em>HousingWire</em> also <a href="https://www.housingwire.com/articles/homebuilder-confidence-improves-for-the-fourth-straight-month/" rel="noopener noreferrer" target="_blank">says</a> this about what builders are offering right now:</p>
<blockquote><p><em> “. . . </em><strong><em>the use of sales incentives still shows some momentum</em></strong><em> as 60% of respondents reported using them, up from 58% in February. “</em></p></blockquote>
<p>Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local <a href="https://www.simplifyingthemarket.com/2024/02/05/why-having-your-own-agent-matters-when-buying-a-new-construction-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a>. Builder contracts can be complex. A trusted agent will be your advocate throughout the process.</p>
<p>They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more.</p>
<h3>Bottom Line</h3>
<p>If you’re struggling to find a home to buy, or with today’s affordability challenges, connect with a local real estate agent to see if newly built homes could be the solution you’re looking for.</p>
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