Why NOW Is a Good Time to Buy a New Construction Home
The real estate market has been a roller coaster ride for the last few years, with prices skyrocketing amid the buying frenzy of the pandemic and then declining earlier this year. Here at NewHomesMate, our new homes experts see our current market conditions as an ideal opportunity to buy a new home. Compared to the sellers’ market of 2020-21, you now get a better selection of homes at a lower price, along with more bonuses and incentives to sweeten the deal. This truly is a buyers’ market and an opportunity not to be missed! Let’s take a closer look at the reasons why.
Lower Prices on New Construction Homes
As the market has cooled, so have new home prices. A recent survey revealed that 83% of home builders have lowered their prices in the last few months. While different markets are experiencing different rates of price decline, there is a definite trend of falling prices in new construction housing across the country, and you can expect to pay at least 10% less than you would have paid last year.
More Inventory, Less Competition
Back in 2020-21, when housing inventory was unable to keep up with demand, buyers were forced to take what they could get. After viewing a property, buyers had just hours to put in an offer, and those who took too long missed out. With significantly more inventory available in today’s market, you get to choose from a wide array of options relating to your home’s location, floor plan, and design. Less competition in the market also means you can take your time to compare your options so that you can confidently make an informed decision about your new home purchase.
Greater Builder Incentives
In addition to lower home prices, homebuilders are also offering greater incentives to boost sales of new construction homes. This may include a fixed amount to spend on upgrades to your new home, cash toward closing costs, and even below-market interest rates. Recently, one of our agents, Chris Baker, helped a client buy a new home in the Dallas-Fort Worth area. These buyers were given a total of $17,500 in incentives, which included a 3% credit off the purchase price towards closing costs, $5,000 in cash from the lender, and a fixed interest rate that was well below market rates. That’s quite a deal!
Better Service from Homebuilders
In today’s buyers’ market, where demand is moderate, you get the benefit of better service from builders who are eager to win your business. When you enquire about a home or submit an offer, you can expect to get a phone call from a builder’s representative who is ready to answer each of your questions and go over all the numbers with you. During the building process, you will be kept well informed of construction progress by a dedicated construction manager, who will walk you through each stage of the building process to ensure that your new home is built exactly to your satisfaction.
But What About Those Rising Interest Rates?
There’s no denying the fact that interest rates have increased this year and they may even continue to do so in the coming months. We understand that this can make you hesitant about entering the market. What many people don’t realize, however, is that current rates are right around average when you consider historical trends. Interest rates rose to 18% in the 1980s, and the current rate of 7% is about average for a 30-year fixed-rate mortgage in the United States.
Marry the House, Date the Rate
Here at NewHomesMate, we think this is the ideal time to turn your dream of owning a new home into a reality. You may have heard the decades-old slogan, “marry the house, date the rate” and this is most certainly a good time to heed this advice. If you buy now, you’ll get the house you want at a great price, and it’s yours forever. The cost of the loan may be higher, but that’s a temporary situation that can be changed later through refinancing.
NewHomesMate Is Here to Assist
At NewHomesMate, we believe that knowledge and information are critical when you’re making one of the most important financial decisions of your life. We’re here to give you a clear, transparent vision of the market so that you can make a confident, informed decision about buying a new home.
On our platform, you can view and compare all of the new construction home inventory and builder incentives available on the market today. You can schedule in-person and virtual tours of new homes and communities and even gain access to financing options. Most importantly, by working with NewHomesMate, you get access to our agents who are dedicated experts in the new construction housing market. Their knowledge of local areas and markets, combined with their relations with local builders, enable them to provide valuable advice aimed at empowering buyers like you to turn your dream of owning a new home into a reality.