Exploring the Benefits of Buying a New Build Home Today
Finding a home today can be difficult, as there is a limited supply. If you’re having trouble finding something that suits your needs, consider buying a new build home. It’s a great option!
As a recent article from the National Association of Realtors (NAR) says:
“Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.”
This graph shows data from the Census to show the trend of new-home completions over time. The long-term average for finished housing units is shown in black. This is an important metric that helps to illustrate how much new home construction is taking place nationwide. Completions refer to newly built homes that are ready to move into.
Understanding this data can help inform decisions related to housing investment. It’s important for stakeholders to be aware of the trends in this area. This data is a valuable resource when considering various options for home buyers and real estate investors. Understanding how completions have changed over time can help inform strategies for success in these markets.
Builders exceeded the historical average leading up to the housing crash (shown in orange), resulting in an oversupply of homes. This caused a decrease in home values, one of the main factors that caused the crash in 2008.
New home construction has decreased, with builders not producing enough homes to meet the historical average (shown in red). This causes a housing market inventory deficit over multiple years, contributing to the current low inventory levels.
The latest Census report shows that builders are meeting the long-term average in terms of new housing construction (shown in green on the right). This is good news, as it means more newly built homes are being brought to the market.
Construction starts and permits are steadily rising. This indicates an upcoming influx of newly built homes. Starts refer to projects that have already kicked off, while permits are projects with plans to break ground soon. Both metrics reflect increased housing activity.
What This Means for You
On the other hand, if you’re open to a longer timeline and some customization options, newly built homes still under construction may be an option. If this is something you’re interested in, make sure to ask your real estate professional about the different stages of construction for any potential properties. Additionally, inquire about builder warranties and whether they are transferable to a new homeowner. That way, you can be sure that your home will have the protection it needs while it is still under construction. Finally, find out if there are any tax incentives or other opportunities available to buyers of newly constructed homes in your area. Taking advantage of these could help you save money in the long run.
If you can wait and prefer to customize a home, ask your agent about properties currently being built. Customizing while in progress may be the best way to get all of the features you desire. You’ll be able to pick out the finishes as well, allowing for a home tailored exactly to your needs.
Having a reliable real estate agent by your side is essential when looking for a home. They have an intimate knowledge of what’s available in the local market and can provide tailored advice that meets all your criteria.
A good agent will be familiar with the area and can tailor their advice to suit you, taking into account your wants, needs, and preferred neighborhoods.
Bottom Line
In conclusion, new-home construction is an excellent option for anyone struggling to find a home in today’s limited housing market. Not only can you customize the features and finishings of your dream home if it’s still in the works, but homes that have already been completed are often ready to move into quickly.
To make sure you’re taking advantage of all the options available to you, be sure to enlist the help of a real estate professional who can offer expert guidance on what’s available in your area. With their help and knowledge, you’re sure to find the perfect home for you.