If you’ve been searching for a new home lately, you may have felt the impact of the limited pool of available homes on the market. However, don’t despair because newly built homes are a great option that you might have overlooked. In this blog post, we’ll discuss the advantages of buying a newly built home and why it’s worth considering this option.
According to a recent article from the National Association of Realtors (NAR):
“Home buyers continue to be met with limited housing options during what’s typically the real estate market’s busiest season. . . . The current supply of existing homes is about half the level it was in 2019 . . . Meanwhile, the market for new construction is a bright spot.”
Here’s a look at a crucial indicator that demonstrates how quickly new home construction is picking up in the United States. New residential completions are what it is known as. Completions are basically newly constructed houses that are finished and ready to move into.
The graph below, which displays the long-term average for the quantity of completed housing units (shown in black on the graph) and the trend of new-home completions over time, is based on data from the Census.
In the years preceding the housing crash, builders went above and beyond that average, as seen on the left (shown in orange). Home values decreased as a result of the excess of available housing. That was one of the causes of the housing crash in 2008.
Since then, the rate of new home construction has decreased, and builders haven’t produced enough homes to equal the historical average (indicated in red). A multi-year inventory deficit resulted from this underbuilding in the housing market. And part of the reason why inventory is currently so low is that deficit.
The good news is that, though. Builders are currently matching the long-term average, as indicated by the green on the right, according to the most recent Census report. And as a result, they are putting more newly constructed homes on the market than they have in recent years.
Additionally, residential starts and permits are also accelerating. Starts are residences where construction has formally begun. Homes with permits are those where contractors intend to start construction soon. Both being up indicates that there will soon be even more newly constructed homes.
Why It Matters to You
The number of newly constructed homes in various stages of construction means that you now have more options. If timing is important to you and you’re looking to move right away, get in touch with a local real estate agent to learn more about the homes that have recently been built in your neighborhood. You ought to be able to move in quickly if those houses are built.
Ask that same agent about the homes in your neighborhood that are currently being built if you can wait a little bit and the idea of customizing a home from the ground up appeals to you. You can choose the features and finishings as they are being created if you purchase a house that is still under construction. And if none of the houses you’ve seen so far appeal to you, your best option might be to design your own home.
In either case, working with a reliable real estate agent is essential. They’ll be fully aware of the options in your area and able to make recommendations based on your special requirements, preferred neighborhoods, and more.
Because of the low inventory, it might be time to think about looking into new home construction if you’re having trouble finding a home you like. Let’s connect so you can work with someone who is knowledgeable about the options in our region if you’d like to start that conversation.
