When you’re planning a move, it’s normal to wonder where you’ll end up and what your future home is going to look like. Maybe you’ve got a specific picture of that house in your mind. But unless you came into this process knowing you want to buy a newly built home, you may not have pictured new home construction.
1. Adding Newly Built Homes Could Give You More Options
There are two types of homes on the market: new and existing. A newly built home refers to a house that was just built or is under construction. An existing home is one a previous homeowner has already lived in. Right now, the inventory of existing homes is tight. But there may be options for you on the new home side of things.
Data from the Census and the National Association of Realtors shows that newly built homes are a bigger part of today’s housing inventory than the norm.
From 1983 to 2019, newly built homes made up only 13% of the total inventory of homes for sale. But today that number has climbed to over 33%. After over a decade of underbuilding, builders aren’t overdoing it today. Even with an increase in new construction today, there’s still a significant housing shortage overall.
2. Newly Built Homes May Be More Affordable Than You’d Think
You may still be wondering if a new build could really be an option for you. If you’ve previously written them off because you thought they would be out of your budget, consider this. The price gap between a newly built home and an existing house is shrinking. Here’s why.
Builders are going to build what’s in demand. They know people need more options right now, especially ones that are smaller and potentially more affordable. So, they are focusing on building smaller homes at lower price points.
Some builders are offering price cuts and mortgage rate buy downs right now. Just know that buying a newly built home isn’t the same as buying an existing one. Builder contracts have different fine print.