Why a Newly Built Home Could Be Easier on Your Budget

If you're looking to buy a home, there's some exciting news for you. Many people assume that newly built homes are pricier than pre-owned ones, but that's not always true. In fact, newly built homes can sometimes offer more cost-effective options, especially in today's market. It might sound surprising, but the data backs it up.

Here are two main reasons why collaborating with your agent to explore new home construction could lead you to a more budget-friendly option.

Reason 1: Lower Average Prices for Newly Built Homes

The median sales price of newly built homes is currently lower than that of existing homes. This may be surprising, but the latest data from the Census and the National Association of Realtors (NAR) confirms it:

Why is this happening? Builders are concentrating on constructing homes that will sell quickly. Currently, there's a high demand for smaller and more affordable homes, which is exactly what builders have been producing. Additionally, there are more newly built homes on the market now than in recent years, so builders are motivated to sell their existing inventory before adding more.

Reason 2: Enticing Offers from Home Builders

Another significant reason to consider a newly built home is the variety of incentives many home builders are offering. To sell their current inventory, some builders are providing special deals to entice homebuyers. HousingWire explains this current trend:

"In June, 61% of home builders used sales incentives, an increase from 59% in May."

One of the most attractive incentives currently is that builders can offer competitive mortgage rates. They may also provide additional perks, such as covering closing costs or offering free upgrades.

Why This Is Important for You

Exploring newly built homes could reveal opportunities you hadn’t considered before. With competitive pricing and enticing incentives, you might discover that a brand-new home is the most attractive option for you.

Bottom Line

Purchasing a home is a significant decision, and evaluating all your options is crucial. By considering newly built homes, you might find an ideal match for both your needs and your budget.

Let’s explore the possibilities together. If you have any questions or want to see what’s available, contact a local real estate agent.