In today's housing market, there are two major issues that are affecting buyers when it comes to affordability. First, mortgage rates have gone up compared to the past couple of years. Second, there has been a rise in home prices due to a low supply of homes. To tackle these challenges, many people are teaming up with their real estate agents to look for more affordable homes. Luckily, there is a high number of newly built homes in the market right now, which presents a great opportunity for buyers searching for brand new homes.

People Are Spending Less on Newly Built Homes

Take a look at this graph below. It's based on the most up-to-date data from the Census. What it shows is that in June of this year, a larger portion of the newly built home sales in our country were in the lower price ranges compared to last year in 2022.

Builders Are Offering Lower-Cost Options

““Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .””

— George Ratiu, Chief Economist at Keeping Current Matters

I have some interesting news to share with you. The fresh data that just came in from the Census is showing something quite fascinating. It's actually confirming what we've been suspecting all along. The median sales price of newly constructed homes has actually taken a bit of a dip in the past few months. I even have a graph below to give you a visual of the trend. Pretty cool, right?

According to Mikaela Arroyo, the Director of the New Home Trends Institute at John Burns Real Estate Consulting, she says that the builders who are really taking notice of this trend are creating opportunities for people to own their own homes.

““. . . it is creating opportunities for people to be able to afford an entry-level home in an area. . . . if you get that size down, that automatically will make it a more affordable home. The [builders] that are decreasing [size] the most are probably the ones that try to build more of an affordable product.””

— Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting

How an Agent Can Help

Builders who are making smaller and cheaper brand-new homes are really giving you more affordable choices at a time when we all need it. If you’re looking to buy a home soon, it would be a great idea to team up with a local real estate agent. They can help you explore what’s available in your area, including newly built homes or ones that are currently being built.

Bottom Line

If you're struggling to find a home that ticks all your boxes without breaking the bank, we should definitely chat. It's important to have a real estate pro by your side who's well-versed in the current housing market, especially when it comes to homes that are either still being built or have just been completed. This way, you'll have someone who's got the inside scoop on builder reputations, contracts, negotiations, and all the other nitty-gritty details that'll make your homebuying journey a whole lot smoother. So why not connect with us and let us be your expert guide?