{"id":4433,"date":"2023-02-15T11:32:56","date_gmt":"2023-02-15T11:32:56","guid":{"rendered":"https:\/\/twolakeshomes.com\/should-you-consider-buying-a-newly-built-home\/"},"modified":"2023-02-20T20:46:19","modified_gmt":"2023-02-20T20:46:19","slug":"should-you-consider-buying-a-newly-built-home","status":"publish","type":"post","link":"https:\/\/twolakeshomes.com\/2023\/02\/should-you-consider-buying-a-newly-built-home\/","title":{"rendered":"Should You Consider Buying a Newly Built Home?"},"content":{"rendered":"
If you\u2019re thinking about buying a home, you might be focusing on previously owned ones. But with so few houses for sale today<\/a>, it makes sense to consider all your options, and that includes a home that\u2019s newly built.<\/p>\n\n While there are more houses for sale right now than there were at this time last year, there\u2019s still a historically low number of homes available<\/a> on the market. One reason for that is years of underbuilding\u2014meaning there haven\u2019t been enough new homes built to keep up with demand.<\/p>\n\n <\/a><\/p>\n\n The graph above shows how low the production of newly constructed homes has been over the past 14 years<\/a>. But it also shows another important trend: the number of new homes being built each year is on the rise<\/strong>. As Mark Fleming, Chief Economist at First American<\/em>, shares<\/a>, that\u2019s good news for buyers:<\/p>\n\n \u201cWhile existing-home inventory remains limited, the silver lining for home buyers is that new-home inventory is on the rise<\/strong>, and a new home at the right price is a pretty good substitute.\u201d<\/em><\/p>\n While there a growing number of new homes for sale, builders are slowing that pace until they sell more of their current inventory. According to Logan Mohtashami, Lead Analyst at HousingWire<\/em><\/a>:<\/p>\n\n \u201cThe builders have to work off the backlog of homes, but instead of 3%-4% mortgage rates, they\u2019re dealing with 6% plus mortgage rates, which means they have to provide many incentives to make sure those homes sell<\/strong>.\u201d<\/em><\/p>\n Many builders are now offering incentives to help buyers purchase these homes. Fleming also explains:<\/p>\n\n \u201cThe National Association of Home Builders reported that nearly two-thirds of builders were offering incentives<\/strong>, including mortgage rate buydowns, paying points for buyers and price reductions, which could entice potential home buyers.\u201d<\/em><\/p>\nThe Number of Newly Built Homes Is on the Rise<\/strong><\/h4>\n
Builder Incentives Can Provide a Boost<\/strong><\/h4>\n