Mortgage
Do you think a brand-new home means a bigger price tag? Think again.
Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in):
You read that right. That brand new, never-been-lived-in house may cost less than the one built 20 years ago in a neighborhood just down the street. So, if you wrote off a new build because you assumed they’d be financially out of reach, here’s what you should know. You could be missing out on some of the best options in today’s housing market.
1. Builders Are Building Smaller Homes
Builders know that buyers are struggling with affordability today. So, instead of building big houses that may not sell, they’re building smaller ones that will. According to the Census, the average size of a newly built single-family home has dropped considerably over the past few years (see graph below):
And as size goes down, the price often does too. Smaller homes use fewer materials, which makes them less expensive to build. That helps builders keep prices lower so more people can afford them.
2. Builders Are Offering Price Cuts and Incentives
In May, according to the National Association of Home Builders (NAHB), 34% of builders lowered their prices, with an average price drop of 5%. That’s because they want to be sure they’re selling the inventory they have before they build more.
On top of that, 61% of builders also offered sales incentives – like helping with closing costs or buying down your mortgage rate. These are all ways builders are making their homes more affordable, so these homes sell in today’s market.
If you're trying to buy a home right now, be sure to talk to your agent to find out what builders are doing in and around your area. They can find new home communities, as well as builders who are offering incentives or discounts, and hidden gems you might not uncover on your own.
Plus, buying a newly built home often means there are different steps in the process than if you purchase a home that’s been lived in before. That’s why it’s so important to have your own agent who can explain the fine print. You want a pro in your corner to advocate for you, negotiate on your behalf, and make sure your best interests come first.
You could get a home that’s brand new, with modern features, at a price that’s even lower than some older homes. Let’s talk about what you’re looking for and see if a newly built home is the right fit for you.
If buying a home is on your to-do list, what would stop you from exploring newly built options?
Stay up to date on the latest real estate trends.
Mortgage
With high prices and mortgage rates stretching buyers’ budgets, they don’t have a lot of room (or appetite) for unexpected repairs
New Listing
3 beds | 1.5 baths | 2,745 sq ft
Mortgage
According to the latest forecasts, rates aren’t expected to fall dramatically anytime soon
Mortgage
Don’t let misconceptions keep you from exploring one of the most promising options in today’s housing market
Real Estate
Let’s connect so you know what’s working for sellers in our market
Real Estate
Believe it or not, there are clear signs buyer interest is heating up again
Mortgage
An agent's expertise isn’t optional anymore. It’s essential.
Mortgage
Owning a second home could bring you more security and peace of mind for the road ahead
Mortgage
Let’s connect if you want to see the new builds available in and around our area.
You’ve got questions and we can’t wait to answer them.