Why Now Is the Perfect Time to Snag a Brand New Home – Don’t Miss Out!
If you’re in the market for a home, you’ve probably noticed a lot of new construction popping up. In fact, new builds now make up about 33.4% of single-family homes for sale, nearly double what it was before the pandemic.
This might seem like builders are working overtime, but the truth is, the supply of existing homes has shrunk, making new construction more prominent.
Why New Builds Are Attractive Right Now
One of the biggest perks of buying a newly built home is the flexibility in pricing and incentives. Unlike existing home sellers, builders are often more willing to negotiate. They might offer price cuts or even cover some of your closing costs to make the deal sweeter.
About two-thirds of builders are using some form of incentive to attract buyers, like upgrading amenities. While only about a quarter are reducing prices directly, those cuts can average around 5% to 6%.
Are New Builds Really More Expensive?
You might be wondering if new homes are pricier. Traditionally, yes, but the gap is closing. Right now, the median sales price for a new home is around $430,700. Interestingly, the price difference between new and existing homes is now only about 4%, much lower than the 40% gap we saw before the pandemic.
This means new builds are becoming more competitive in terms of price, especially with all the added benefits and incentives.
What to Expect in Terms of Availability
When looking at new construction, it’s important to know that only about 10% of new homes are move-in ready. Most are either in the planning stages or under construction, which means you’ll need to be patient and maybe even a bit flexible with your timeline.
You might have to consider different types of homes or locations and be prepared to make decisions about design and finishes as you go.
Tips for Buying a New Construction Home
1. Think Small: Builders are now focusing on slightly smaller homes to tackle affordability issues. Choosing a smaller home can save you money not only on the purchase price but also on utilities and maintenance down the line. For instance, townhouses are becoming more popular, making up a significant portion of new housing starts.
2. Location, Location, Location: Expanding your search to more rural areas can be a smart move. These areas often have lower regulatory costs and more available land, which can translate into cheaper new construction options.
3. Manage Construction Costs: You have some control over the costs by selecting basic or lower-cost finishes. This can help you stay within budget while still getting a home that meets your needs.
4. Plan for Future Costs: Keep in mind that property taxes on new builds can increase significantly after the first year. Initial tax assessments are often based on estimates, so it’s essential to research how and when property taxes are reassessed in your area.
Buying a new construction home in today’s market can be a smart move, but it requires some strategy and flexibility. With the right approach, you can take advantage of the benefits new builds offer and find a home that fits your needs and budget perfectly.