{"id":7822,"date":"2023-08-17T11:31:02","date_gmt":"2023-08-17T11:31:02","guid":{"rendered":"https:\/\/twolakeshomes.com\/2023\/08\/people-want-less-expensive-homes-and-builders-are-responding\/"},"modified":"2023-08-17T11:31:02","modified_gmt":"2023-08-17T11:31:02","slug":"people-want-less-expensive-homes-and-builders-are-responding","status":"publish","type":"post","link":"https:\/\/twolakeshomes.com\/2023\/08\/people-want-less-expensive-homes-and-builders-are-responding\/","title":{"rendered":"People Want Less Expensive Homes \u2013 And Builders Are Responding"},"content":{"rendered":"
In today\u2019s housing market, there are two main affordability challenges impacting buyers: mortgage rates<\/a> that are higher<\/a> than they\u2019ve been the past couple of years<\/a>, and rising home prices caused by low inventory<\/a>. To overcome those challenges, many people are working with their agents to find less expensive homes. And with newly built homes making up a historically large percentage<\/a> of the total available inventory today, that search often includes brand new homes.<\/p>\n The graph below uses the latest information from the Census<\/em><\/a> to show, in June, more of the newly built home sales in this country were in lower price ranges than in 2022:<\/a>Last year, only 58% of newly built home sales were less than $500,000. This June, that number was up to 65%. This means more people are buying less expensive newly built homes right now while affordability remains a challenge.\u00a0<\/strong><\/p>\n Builders have picked up on this trend and are reacting accordingly. George Ratiu, Chief Economist at Keeping Current Matters<\/em>, explains<\/a>:<\/p>\n \u201cBuilders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .\u201d<\/em><\/p>\n New data<\/a> from the Census<\/em> further confirms this pattern \u2013 it shows the median sales price of newly built homes has dipped down in recent months (see graph below<\/em>):<\/a>And as Mikaela Arroyo, Director of the New Home Trends Institute <\/em>at John Burns Real Estate Consulting<\/em>, says<\/a>, the builders who are most responsive to this trend are forming pathways to homeownership:<\/p>\n \u00a0\u201c. . . <\/em>it is creating opportunities for people to be able to afford an entry-level home in an area<\/em><\/strong>. . . . 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.\u201d<\/em><\/p>\n \u00a0Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that\u2019s really needed. If you\u2019re hoping to buy a home soon, partner with a local real estate agent to find out what\u2019s available in your area. An agent can help you look at newly built homes or ones under construction nearby.\u00a0<\/p>\nPeople Are Spending Less on Newly Built Homes<\/strong><\/h4>\n
Builders Are Offering Lower-Cost Options<\/strong><\/h4>\n
\u00a0How an Agent Can Help<\/strong><\/h4>\n
Bottom Line<\/h3>\n