Capturing the Essence of Newly Built Homes in Spring

Considering a home purchase this spring? Chances are, you're contending with the current affordability constraints and grappling with the scarcity of available homes on the market. However, what if there were a solution that could address both of these challenges simultaneously?

If you're struggling to find a home that meets your criteria and mortgage rates are straining your budget, it might be worthwhile to explore newly constructed homes. Here's why:

New Home Construction Is an Inventory Bright Spot

When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the number of existing homes for sale has increased this year, there are still fewer available than there were in more typical years in the housing market, like back in 2018 or 2019.

So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.comexplains:

“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”

And the good news is, there are more newly built homes to pick from right now. The graphs below use data from the Census to show how new home construction is ramping up in two key areas (see most recent spike in green):

Starts, or homes where builders just broke ground, have seen a big increase lately. And completions, homes that builders just finished, are also up significantly. So, if you want a new, move-in ready home or you want to get in early and customize your build along the way, you have more options right now.

Builders Are Offering Incentives To Help with Affordability

And to sweeten the pot, builders are offering things like mortgage rate buy-downs and other perks for homebuyers right now. This can help offset today’s affordability challenges while also getting you into your dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer more for you than the typical homeowner:

“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”

An article from HousingWire also says this about what builders are offering right now:

 ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. "

Just remember, buying from a builder is different from buying from a home seller, so it’s important to partner with a local real estate agent. Builder contracts can be complex. A trusted agent will be your advocate throughout the process.

They’ll be your go-to resource for advice on construction quality and builder reputation, reviewing and negotiating contracts to get you the best deal, helping you decide on which customizations and upgrades are most worthwhile, and a whole lot more.

Bottom Line

If you’re struggling to find a home to buy, or with today’s affordability challenges, let’s connect to see if newly built homes could be the solution you’re looking for.

340 Properties
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$575,000
Neighborhood: Vicenza Ph 1
3
Beds
2
Baths
1,683
Sq.Ft.
2022
Year Built
2
Days on Site
A4607240
MLS
$225,000
Neighborhood: Citrus Highlands
3
Beds
2
Baths
1,362
Sq.Ft.
1979
Year Built
2
Days on Site
T3517395
MLS
$390,000
Neighborhood: Toscana Isles Carriage Homes P
3
Beds
2
Baths
1,661
Sq.Ft.
2018
Year Built
3
Days on Site
A4606943
MLS
$537,000
Neighborhood: Vicenza Phase 1
3
Beds
2
Baths
1,536
Sq.Ft.
2022
Year Built
4
Days on Site
A4606835
MLS
$580,000
Neighborhood: Mission Estates
3
Beds
2
Baths
1,856
Sq.Ft.
2002
Year Built
4
Days on Site
N6132397
MLS
$800,000
Neighborhood: Hidden Bay Estates
3
Beds
2
Baths
1,903
Sq.Ft.
2017
Year Built
5
Days on Site
N6132241
MLS
$439,000
Neighborhood: Sorrento East
2
Beds
2
Baths
1,458
Sq.Ft.
1984
Year Built
5
Days on Site
A4606861
MLS
$530,840
Neighborhood: Magnolia Bay
3
Beds
2
Baths
1,654
Sq.Ft.
2024
Year Built
5
Days on Site
O6191480
MLS
$580,260
Neighborhood: Magnolia Bay
4
Beds
3
Baths
2,190
Sq.Ft.
2024
Year Built
5
Days on Site
O6191479
MLS
$580,260
Neighborhood: Magnolia Bay
4
Beds
3
Baths
2,190
Sq.Ft.
2024
Year Built
5
Days on Site
O6191478
MLS
$389,000
Neighborhood: Venetian Golf & River Club
2
Beds
2
Baths
1,100
Sq.Ft.
2003
Year Built
5
Days on Site
N6132291
MLS
$570,000
Neighborhood: Toscana Isles
2
Beds
2
Baths
1,796
Sq.Ft.
2022
Year Built
5
Days on Site
A4607141
MLS

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