Many folks don’t appreciate how quickly the real estate scene can change.
The slightest movement in mortgage costs – especially when they fall – can trigger a mass movement of buyers looking to upgrade or enter the market in a matter of just a few weeks.
And no sooner is that tsunami in motion than property values start to rise and owners who were hesitating about whether to sell put out the For Sale flags!
One aspect of the property scene that isn’t discussed much is the influence of new homes on the market.
There’s a lot of construction happening across America right now. And that’s just as well as Freddie Mac said in a recent research study that America needs an additional 1.5 million homes to achieve a balanced market.
The market appears to be responding to this challenge. Some 33.4% of all single-family homes for sale in the first quarter of 2024 were newly built, according to the National Association of Home Builders (NAHB).
The median sale price for a new home sold in the US was $430,770 – slightly less than the median price for an established property. That’s according to March data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The surge in new construction is due to two key factors. The pandemic led to a boom in homebuilding as builders responded to the increased demand. And higher mortgage rates have made homeowners hesitant to sell, resulting in there being fewer homes on the market to buy.
Builders are becoming more flexible with pricing to attract buyers. Below, I’ve listed some ideas for why you might want to consider purchasing a new home, as well as tips for a walk-through.
- Customization: You get to choose the finishes, fixtures and features that make your home truly yours.
- Modern Design: You should expect the inclusion of the latest architectural styles and smart home features.
- Energy Efficiency: New homes should incorporate energy-efficient materials and design, potentially lowering your utility bills.
- Protection: Most builders offer warranties that cover structural issues and certain defects.
Tips for a walk-through of a new home:
- Inspect the Details: Pay attention to the quality of finishes, appliances and fixtures.
- Test Everything: Turn on faucets, flush toilets, open and close windows and doors.
- Assess the Layout: Does the layout suit your lifestyle? Visualize how you would furnish the space.
- Warranties: Clarify any concerns or limitations on the warranties associated with the property.
- Explore the Neighborhood: Consider factors like proximity to employment, amenities, schools and transportation.