The Top 2 Reasons To Look at Newly Built Homes
When planning a move, a newly built home might not be the first thing that comes to mind. But with more brand-new homes on the market and builders focusing on smaller, more affordable options, this type of home may just be the key to crossing the homebuying finish line.
Here’s why a new build is worth considering – and how an agent can help you find one that meets your needs and your budget.
1. More Newly Built Homes Are Available Right Now
First, let’s break down the types of homes on the market. A newly built home is a house that was just built or is under construction. On the other hand, an existing home is one a homeowner has already lived in.
Right now, the number of existing homes for sale is still low. And, if you’re struggling to find something you like because there aren’t that many existing homes for sale, opening up your search to include brand-new homes could really expand your options. That’s because there are more newly built homes available right now than in a typical year (see graph below):
From 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. Today, that number has climbed to 28.8%, according to the most recent data.
And as Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), notes:
“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.”
While the uptick in new home construction is encouraging, rest assured that builders aren’t overdoing it, they’re just making up for over a decade of underbuilding. There are still way more buyers than there are homes on the market. But the good news for you is this increase in newly built homes means more options for your search.
2. Newly Built Homes Are Becoming Less Expensive
Still skeptical if a new build is right for you or if they’re even in your budget? The average cost of newly built homes has actually come down from a year ago.
Why is that? Builders know affordability is top of mind for homebuyers right now. So they’re focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell. As Realtor.com says:
“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.”
Something to keep in mind: buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print. So be sure to partner with a local agent who knows the market, builder reputations, and what to look for in those contracts.
Depending on your needs and budget, a new build might be the opportunity you’ve been waiting for to bring your homebuying vision to life. If you’re interested in a brand-new home, let’s connect so you can check out what builders in your area are up to.
The Top 2 Reasons To Look at Newly Built Homes
When embarking on the exciting journey of homebuying, it’s easy to default to the tried-and-true path of scouring listings for an existing home. But what if your perfect match isn’t tucked away in a neighborhood of pre-loved properties? What if the key to finding your dream home lies in something fresh, untouched, and perfectly tailored to modern living? That’s where brand-new homes come into play. With a wave of new construction reshaping the real estate market, now is the perfect time to consider buying a newly built home. Let’s explore the top two reasons why this option might be exactly what you’re looking for.
1. More Newly Built Homes Are Available Right Now
The housing landscape is evolving, and one of the most compelling changes is the surge of more newly built homes entering the market. To fully appreciate this trend, it helps to understand the types of homes on the market. In simple terms, there are two main categories: existing homes and newly built homes.
An existing home is one that has already been lived in by a homeowner, while a newly built home is either freshly completed or still under construction. Historically, existing home sales dominated the market, but that’s shifting. The number of existing homes for sale has dwindled due to various economic factors, leaving buyers with fewer housing options. Enter the new build – a category that’s thriving and providing a welcome alternative to inventory-starved buyers.
Housing Inventory Is Changing
From 1983 to 2019, newly built homes comprised just 13% of the total housing inventory. Fast-forward to today, and that number has surged to nearly 29%, according to data from the National Association of Realtors (NAR).
Economists like Lawrence Yun, Chief Economist at the NAR, have noted that this is one of the strongest years for newly constructed home sales in the past 15 years. Why the sudden boom? It’s partly because homebuilders are stepping up to fill the gap left by limited existing home sales. For over a decade, underbuilding has left the market with fewer homes than needed to meet growing housing demand. Now, homebuilders are actively working to bring more affordable homes to the market, ensuring buyers have better housing options than ever before.
A Solution to Tight Housing Demand
The increase in newly built homes means buyers have access to properties that are modern, energy-efficient, and tailored to today’s lifestyles. And while the market is still competitive, the presence of more brand-new homes ensures there’s at least some relief from the bottleneck of high housing demand. If you’re tired of bidding wars over outdated properties, it might be time to expand your search to include brand-new homes.
2. Newly Built Homes Are Becoming Less Expensive
One of the most common misconceptions about buying a newly built home is that it’s prohibitively expensive. While it’s true that larger, luxury new constructions can command high price tags, the reality for most buyers is quite different. The average cost of newly built homes has decreased compared to a year ago, making them an increasingly budget-friendly option.
Why Are Prices Dropping?
Builders understand the importance of home affordability, especially as economic pressures weigh on potential buyers. In response, they’re focusing on constructing smaller homes and offering properties at lower price points. This shift is bringing more affordable options to the market and making brand-new homes accessible to a broader range of buyers.
According to Realtor.com, this trend toward affordability is part of a larger strategy by homebuilders to cater to modern buyer needs. By designing smaller homes that are stylish, functional, and competitively priced, they’re filling a niche that has long been overlooked in the market. The result? More budget-friendly homes that could easily fit within your financial plans.
Affordability Meets Modern Comfort
When you opt for a newly built home, you’re not just getting a place to live; you’re investing in a property designed with contemporary living in mind. Features like energy-efficient appliances, open-concept layouts, and smart home technology come standard in many brand-new homes, saving you money on utilities and offering long-term value. With all of these perks rolled into a package that’s increasingly affordable, it’s clear why a new build is worth considering.
The Role of Builder Contracts
It’s important to note that buying a newly built home isn’t the same as purchasing an existing home. One major difference lies in the builder contracts. These contracts often come with unique terms and conditions, which can vary widely between builders. This is where knowing how an agent can help you becomes crucial.
By working with a local agent who’s familiar with the real estate market and the nuances of builder contracts, you can avoid potential pitfalls and ensure the deal aligns with your best interests. An experienced agent will have insights into market trends, homebuilder reputations, and local pricing dynamics, giving you an edge in negotiations.
Why West Palm Beach Buyers Should Look at Newly Built Homes
If you’re house hunting in West Palm Beach, considering a newly built home could be especially advantageous. With a hot real estate market and increasing housing demand, West Palm Beach mortgage brokers are seeing a spike in interest for affordable West Palm Beach home loans. Here’s why newly built homes make sense in this area:
- Best mortgage rates in West Palm Beach are often available for buyers of brand-new homes due to builder incentives.
- First-time home buyer loans in West Palm Beach can make owning a budget-friendly home more attainable.
- West Palm Beach refinancing options provide flexibility for buyers who want to lock in favorable terms over time.
- Local mortgage lenders in West Palm Beach offer personalized guidance, helping you navigate options like West Palm Beach mortgage calculators for accurate budgeting.
- Commercial mortgage brokers in West Palm Beach can even assist if you’re considering mixed-use properties or investment opportunities.
Whether you’re seeking property loan advice in West Palm Beach or need help with mortgage preapproval in West Palm Beach, the resources available in this vibrant market are unparalleled. By partnering with a local agent, you can tap into a network of trusted professionals to guide your purchase from start to finish.
More Reasons to Consider Newly Built Homes
In addition to affordability and availability, there are several other benefits to buying a newly built home:
Modern Design and Customization Options
Many brand-new homes come with customizable features, allowing you to choose everything from flooring materials to countertop finishes. This personalization ensures your new home reflects your style and meets your specific needs.
Energy Efficiency and Sustainability
Newly built homes are designed with the latest energy-efficient technologies, which can significantly reduce utility costs. Features like solar panels, energy-efficient windows, and smart thermostats make these homes eco-friendly and cost-effective.
Lower Maintenance Costs
When you purchase a newly constructed home, you can rest easy knowing that everything’s in pristine condition. This means fewer unexpected repair costs and the peace of mind that comes with warranties on major systems and appliances.
Community Amenities
Many new construction developments include community amenities such as parks, swimming pools, fitness centers, and walking trails. These features enhance your lifestyle and add value to your investment.
The Bottom Line
A newly built home offers more than just a fresh start; it’s an opportunity to embrace modern living in a property designed to meet your needs. With more newly built homes available right now and prices trending downward, the time has never been better to consider this option. From enhanced housing inventory to increased home affordability, the benefits are clear. Add in the expertise of a local agent to navigate builder contracts and market dynamics, and you’ve got a winning formula for finding your dream home.
So, whether you’re eyeing smaller homes with lower price points or want the perks of living in a brand-new home, the path forward is paved with possibilities. If you’re ready to explore your options, connect with a West Palm Beach mortgage broker today and take the first step toward owning a home that truly fits your lifestyle.
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