Why Buying a New Construction Home Could Be a Smart Move Right Now
Are you hoping to find better pricing—or even a lower mortgage rate? You might be surprised to discover both when you consider a newly built home. While many buyers aren’t paying attention to new construction, it could actually be one of the best opportunities in today’s market. Here’s why.
There are more new homes available now than just a few months ago. In fact, according to the latest data from the Census Bureau and National Association of Realtors (NAR), about 1 in 5 homes for sale today is new construction. So, if you’re skipping over new builds, you’re overlooking a big portion of what’s out there.
And with this increase in inventory, builders are eager to sell. That means they’re taking steps to attract buyers.
Builders Are Dropping Prices
Nearly 40% of home builders recently reduced their sales prices, according to Buddy Hughes, Chairman of the National Association of Home Builders (NAHB). Builders are adjusting to today’s market realities and working hard to keep their homes moving.
This creates an opportunity for buyers—builders may be more flexible on price than you’d expect, so your money could stretch further on a new home. It’s smart to work with your real estate agent to see what’s available and what builder incentives might be offered in your area.
Builders Are Offering Lower Mortgage Rates
Here’s something a lot of buyers don’t realize: you may be able to get a better mortgage rate when buying a brand-new home.
That’s because many builders are offering rate buydowns to help buyers secure lower monthly payments and encourage sales.
In fact, Realtor.com data shows that in 2023 and 2024, buyers of newly built homes secured mortgage rates around half a percent lower, on average, than buyers of existing homes.
Those kinds of savings can really add up—and they can make a big difference when you’re planning out your monthly budget.
So if you haven’t found the right home yet, it might be time to take a closer look at newly built homes. The perfect place for you could already be available in a new home community nearby.
Bottom Line
More options to choose from, potential price flexibility, and possibly even lower mortgage rates make new construction homes one of the bright spots in today’s market.
If you haven’t thought about going the new construction route yet, what’s stopping you?
If you’re curious about what’s out there and whether a new build could be a good fit for you, reach out to me! I’d love to help you explore your options and guide you through the process.
Disclaimer: The information provided in this blog post is based on the latest available data at the time of writing, which is subject to change. It is intended for informational purposes only and should not be considered as financial or investment advice.