Are you looking for better home prices, or even a lower mortgage rate? You might find both in one place: a newly built home. While many buyers are overlooking new construction, it could be your best opportunity in today’s market. Here’s why.
There are more brand-new homes available right now than there were even just a few months ago. According to the most recent data from the Census and the National Association of Realtors, roughly 1 in 5 homes for sale right now is new construction. So if you are not looking at newly built homes, you are missing out on a big portion of what’s available.
And with more new homes on the market, builders are motivated to sell their current inventory. As a result, many are taking steps to draw in buyers.
Builders Are Cutting Prices
“Almost 40% of home builders reduced sale prices in the last month”
That means builders are being realistic about today’s market and adjusting to what buyers can afford. It’s their way to keep their inventory moving.
So, builders may be more willing to negotiate price than you would expect. That means your dollar may go further if you buy a newly built home. Contact me to see what’s available and what incentives builders are offering in and around your area.
Builders Are Offering Lower Mortgage Rates
Here’s something most people don’t know. Right now, buyers of brand-new homes often get better mortgage rates than buyers of existing homes.
That’s because many builders are also offering rate buydowns to make their homes more attractive and keep sales moving. Basically, they are willing to chip in to lower your rate, so you are more likely to buy one of their homes.
Data from Realtor.com shows, in 2023 and 2024, buyers of newly built homes got a mortgage rate around half a percent lower compared to those who bought existing homes.
That kind of savings adds up and makes a big difference when you are figuring out your monthly budget.
So, if you haven’t found something you love yet, it’s time to add newly built homes to your search. You may find that what you have been looking for is already out there, it’s just in a new home community.
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