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.
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 sttill 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.
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.
While the uptick in new home construction is encouraging, rest assured that builders aren’t overdoing it. They are 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 are focusing their efforts on building smaller homes they can offer at lower price points and are more likely to sell.
Something to keep in mind. Buying a newly built home isn’t the same as buying an existiing one. Builder contracts have different fine print. So be sure to partner with a local agent. I know the market, builder reputations, and what to look for in those contracts.