September Foundations Newsletter
September 2024 Housing Market Update
This week's update from Realtor.com ? Econ Team led by Danielle Hale , Chief Economist, highlighted that the Fed remains optimistic about reaching its 2% inflation target. The PCE index reflected a 2.2% inflation rate over the past year. Mortgage rates dipped to a two-year low at 6.1%, sparking consumer interest. Although new home sales slipped slightly from July, they were up nearly 10% compared to last year, with the share of homes priced under $400,000 increasing and pulling the median price lower.
As we approach the best time to buy a home, Ralph McLaughlin pointed out how buyers can leverage listing descriptions like "priced to sell" for potential discounts. Meanwhile, top investment markets are showing strength in the Northeast and Midwest, according to Hannah Jones , while rent trends remain mixed, with NYC rents on the rise for smaller units.
You can find more detailed reports and data at realtor.com/research and follow the team on X or Instagram for real-time updates.
How Fed Rate Cuts Could Impact New Construction—and More on the State of Homebuilding Today
The recent rate cut by the Federal Reserve, the first in four years, could potentially lead to more affordable new mortgages, giving homebuyers greater purchasing power. This comes at a time when the U.S. is facing a shortage of 7 million homes, leading to high demand for new construction properties with modern amenities and energy efficiency.
In regions like the South and West, according to Joel Berner , Senior Economist of Realtor.com , new-construction homes are priced lower per square foot compared to existing homes, making them particularly appealing to buyers. Builders are also offering incentives such as down payment assistance and contributions towards closing costs, making it a great opportunity for those interested in buying a brand-new home.
Discover more about the state of homebuilding today by reading the full article here .
Build Better Webinar - Innovating Homebuying: Trust, E-commerce and AI in the Future of Homebuilding
Realtor.com New Construction team members Don Turner and Rick Baldonado , in a conversation with Stephanie McCarty , Chief Marketing Officer of Taylor Morrison, highlighted the significance of integrated, forward-thinking solutions and customer-centric strategies in establishing trust and driving growth within the homebuilding industry.
McCarty emphasized that consumers' shopping behaviors apply to all products, including homes, and celebrated the success of Taylor Morrison's online reservation system during the pandemic, providing more flexibility and transparency to buyers, which has allowed Taylor Morrison to be recognized as the "Most Trusted Home Builder in America" for nine years in a row.
Stephanie talked about the growing influence of AI in home construction, highlighting how consumers depend on AI tools to make decisions. She also stressed the significance of enhancing builders' websites with AI-driven searches that prioritize lifestyle and personalization.
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Innovative Builder Incentives For First-Time Homebuyers
First-time homebuyers often face challenges such as high property costs, large down payments, and unexpected closing fees, which can make homeownership seem out of reach. However, builders have the opportunity to stand out by offering strategic incentives. These incentives include innovative programs like rent-to-own options, credit repair assistance, and first-time buyer education, which can make the home-buying process more accessible. Traditional incentives, such as down payment assistance and closing cost contributions, can also help ease the financial burden.
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By offering or partnering with lenders that provide flexible financing and support programs, builders can foster loyalty among buyers and create thriving communities, and educating buyers not only improves their experience but also reduces transaction delays.
Learn about how powerful builder incentives can be to attract first-time homebuyers here .
Days of Deals Campaign
For the first time in decades, buying a new construction home has become more affordable than buying an existing home. With builder incentives, lower maintenance costs, and more, our message is simple: there has never been a better time to consider new construction.
From September 18th until October 6th, we’re giving consumers access to browse some of the best new construction deals from builders nationwide, offering an exclusive search experience they won’t find on any other real estate platform.
These incentives, such as rate buy downs, upgrades, and cash at closing, are bucketed into popular categories for easy browsing.?
If you are a client builder and you haven’t updated your listings, follow these steps:
Visit our landing page and enjoy this limited-time browsing experience !
The Bargain Hunter’s Guide to Buying a New-Construction Home
In the current real estate market, where nearly one in three homes for sale today are new construction, and in some areas, these homes are even cheaper than existing ones, it is essential to equip your team with strategies to maximize their opportunities.
Builders are addressing affordability challenges by offering more reasonably priced homes and providing a range of buyer incentives like covering closing costs, upgrades, or mortgage rate buy-downs.
To score the best deal, timing is key. Be prepared for more bargains when buyers sign before completion or during the slower seasons. Additionally, understanding the differences between production and custom builds can help buyers find a home that suits their needs without unnecessary upsells.
Explore how you can create great deals for your buyer and separate from the competition by reading the full article .
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