Thinking about buying a home this spring? Chances are you're facing the current affordability issues and finding limited options on the market. But what if there's a way to address both of these challenges?

If you're struggling to find a home that feels just right, and those mortgage rates are squeezing your budget, consider checking out newly constructed homes. Let me explain why.

New Home Construction Is an Inventory Bright Spot

When you're house hunting, you've got two main options: pre-owned homes or brand-new construction. This year, we've seen more pre-owned homes hitting the market, but inventory is still lower compared to the housing market in 2018 or 2019.

If you're wanting to broaden your choices even further, you might want to consider exploring newly constructed homes. According to Danielle Hale, Chief Economist at Realtor.com, ...

““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.”
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— Danielle Hale, Chief Economist at Realtor.com

Glad to share some good news - currently, there are even more newly constructed homes available for you to choose from. The graphs below, using data sourced from the Census, indicate a significant increase in new home construction in two crucial regions (focus on the recent uptick highlighted in green).

Just a heads up - newly started homes or ones fresh off the construction zone have been on the rise recently. Completed homes, those just wrapped up by builders, are also showing a significant increase. This means if you're looking for a brand-new home you can move into right away, or if you prefer to jump in early and personalize your home as it gets built, there are more choices available to you at the moment.

Builders Are Offering Incentives To Help with Affordability

To make the deal even better, builders are throwing in extras like mortgage rate buy-downs and other goodies for homebuyers at the moment. These perks can assist in easing the current affordability hurdles and fast-tracking your journey to owning your dream home. According to Mark Fleming, Chief Economist at First American, builders might just have more flexibility to sweeten the pot for you compared to your average 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.”
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— Mark Fleming, Chief Economist at First American

An article from HousingWire also mentions what builders are currently providing.

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

When you're purchasing from a builder, it's a whole different ball game compared to buying from a regular home seller. That's why teaming up with a local real estate agent is crucial. Builder contracts can get pretty complicated, but having a trusted agent by your side means you'll have someone looking out for your best interests every step of the way.

They will become your main source for guidance on construction quality and builder reputation, assessing and discussing contracts to secure the most favorable terms for you, assisting you in choosing the most beneficial customizations and upgrades, and much more.

Bottom Line

If you're having trouble finding a home to buy or facing affordability challenges in today's market, why not consider exploring the possibility of newly built homes? Let's chat and see if they might just be the solution you've been searching for.