Friday, January 19, 2024 / by Va Marketing
Are you delaying your plans to sell due to concerns about finding a suitable home for your move? It might be the right time to consider the advantages of a newly built home. Here's why.
A Surge in New Home Inventory
The landscape of housing inventory is witnessing a significant shift with an increasing share of newly built homes. According to the latest report from the National Association of Home Builders (NAHB):
“Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average.”
Data from the Census indicates a rise in both housing starts (commencement of new construction) and housing completions (homes where construction has recently concluded).Far from being a concern about overbuilding, this increase is positive news. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), highlights:
“Even more home building will be needed with the housing shortage persisting in most markets . . . Another 30% rise in home construction can easily be absorbed in the marketplace . . .”
How It Benefits You
Given the current shortage of existing homes for sale, the uptick in new-home construction is a game-changer, offering you more choices in your home search.
Imagine yourself in a home that's entirely new: brand-new appliances, a fresh coat of paint, fewer maintenance requirements—all the perks of a new build. This could be more attainable than you think. Some builders are even providing incentives like mortgage rate buy-downs, helping counteract current affordability challenges and facilitating your entry into your dream home. Patrick Duffy, Senior Real Estate Economist at U.S. News, notes:
“Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high, . . .Today more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more home for the same payment amount.”However, remember that the process of buying from a builder differs from buying from an individual seller. It's crucial to collaborate with a trusted real estate agent familiar with the local market. They will be your main resource for liaising with the builder, examining contracts, and more.
If you're keen on selling but struggling to find a home that suits your preferences, let's connect. Having a local expert by your side ensures you explore all your options, including the newly built homes in our area.