How Builders Are Offering Incentives To Home Buyers

New construction homes are always more popular in a booming economy and therefore, a booming real estate market. I definitely think there is more of a direct correlation between our economy overall and how that effects new construction homes versus how the real estate market actually affects new construction homes.

When the general public is looking for homes in a healthy economy, they tend to naturally be able to afford more. Therefore, they are often attracted to new construction homes because they can afford these homes and to some consumers, they are more desirable.

In an economy that is beginning to suffer, the public will not have as much capital to allow them to afford higher-priced homes. Therefore, they begin to look at low price points and ultimately decide on an older or pre-existing home.

So, what are builders doing to prepare for this shift in the economy?

Builders are ultimately allowing buyers more options regarding countertops, finishes, extra fixtures, etc to keep eyes on their properties (the new construction listings) so that they go under agreement and are sold. My take is that this will ultimately push builders even farther on getting less expensive land or tear downs.

I personally look at homes that have been on the market longer as opportunity to get a "deal" and most new construction homes in our Boston suburb market do have higher average days on market. Would you buy new or pre-existing if you were looking right now?!