If you’re planning to sell your house and move, you probably know there’s been a shortage of options available.
Where Will You Go After You Sell?
Why Having Your Own Agent Matters When Buying a New Construction Home
Finding the right home is one of the biggest challenges for potential buyers today. Right now, the supply of homes for sale is still low. But there is a bright spot. Newly built homes make up a larger percent of the total homes available for sale than normal. That’s why, if you’re craving more options, it makes sense to see if a newly built home is right for you.
But it’s important to remember the process of working with a builder is different than buying from a homeowner. And, while builders typically have sales agents on-site, having your own agent helps make sure you have proper representation throughout your homebuying journey. As Realtor.com says:
“Keep in mind that the on-site agent you meet at a new-construction office works for the builder. So, as the homebuyer, it’s a smart idea to bring in your own agent, as well, to help you negotiate and stay protected in the transaction.”
Here’s how having your own agent is key when you build or buy a new construction home.
Agents Know the Local Area and Market
It’s important to consider how the neighborhood and surrounding area may evolve before making your home purchase. Your agent is well-versed in the upcoming communities and developments that could influence your decision. One way a real estate agent can help is by reviewing the builder’s site plan. For example, you’ll want to know if there are any plans to construct a highway or add a drainage ditch behind your prospective backyard.
Knowledge of Construction Quality and Builder Reputation
An agent also has expertise in the construction quality and reputation of different builders. They can give you insights into each one’s track record, customer satisfaction, and construction practices. Armed with this information, you can choose a builder known for consistently delivering top-notch homes.
Assistance with Customization and Upgrades
The most obvious benefit of opting for new home construction is the opportunity to customize your home. Your agent will guide you through that process and share advice on the upgrades that are most likely to add long-term value to your home. Their expertise helps make sure you focus your budget on areas that will give you the greatest return on your investment later.
Understanding Builder Negotiations and Contracts
When it comes to working with builders, having a skilled negotiator on your side can make all the difference. Builder contracts can be complex. Your agent can help you navigate these contracts to make sure you fully understand the terms and conditions. Plus, agents are skilled negotiators who can advocate for you, potentially securing better deals, upgrades, or incentives throughout the process. As Realtor.com says:
“A good buyer’s agent will be able to review any contracts before you sign on the dotted line, ensuring you aren’t unwittingly agreeing to terms that only benefit the builder.”
Bottom Line
If you are interested in buying or building a new construction home, having a trusted agent by your side can make a big difference. If you’d like to start that conversation, connect with a local real estate agent.
Explaining Today’s Low Housing Supply [INFOGRAPHIC]
![Explaining Today’s Low Housing Supply [INFOGRAPHIC] Simplifying The Market](https://daytonabeachpropertysearch.com/wp-content/uploads/2023/09/Explaining-Todays-Low-Housing-Supply-KCM-Share.png)
Some Highlights
- Wondering why the supply of homes for sale is limited today? There are a few factors at play.
- Lack of building over time, the mortgage rate lock-in effect, and people staying in their houses longer are three of the main reasons why supply is low.
- But real estate agents know exactly where to look and what to do to make your dream a reality. Connect with an agent so you have an expert on your side to help you successfully navigate the market and find your next home.
Why Is Housing Inventory So Low?
One question that’s top of mind if you’re thinking about making a move today is: Why is it so hard to find a house to buy? And while it may be tempting to wait it out until you have more options, that’s probably not the best strategy. Here’s why.
There aren’t enough homes available for sale, but that shortage isn’t just a today problem. It’s been a challenge for years. Let’s take a look at some of the long-term and short-term factors that have contributed to this limited supply.
Underbuilding Is a Long-Standing Problem
One of the big reasons inventory is low is because builders haven’t been building enough homes in recent years. The graph below shows new construction for single-family homes over the past five decades, including the long-term average for housing units completed:
For 14 straight years, builders didn’t construct enough homes to meet the historical average (shown in red). That underbuilding created a significant inventory deficit. And while new home construction is back on track and meeting the historical average right now, the long-term inventory problem isn’t going to be solved overnight.
Today’s Mortgage Rates Create a Lock-In Effect
There are also a few factors at play in today’s market adding to the inventory challenge. The first is the mortgage rate lock-in effect. Basically, some homeowners are reluctant to sell because of where mortgage rates are right now. They don’t want to move and take on a rate that’s higher than the one they have on their current home. The chart below helps illustrate just how many homeowners may find themselves in this situation:
Those homeowners need to remember their needs may matter just as much as the financial aspects of their move.
Misinformation in the Media Is Creating Unnecessary Fear
Another thing that’s limiting inventory right now is the fear that’s been created by the media. You’ve likely seen the negative headlines calling for a housing crash, or the ones saying home prices would fall by 20%. While neither of those things happened, the stories may have dinged your confidence enough for you to think it’s better to hold off and wait for things to calm down. As Jason Lewris, Co-Founder and Chief Data Officer at Parcl, says:
“In the absence of trustworthy, up-to-date information, real estate decisions are increasingly being driven by fear, uncertainty, and doubt.”
That’s further limiting inventory because people who would make a move otherwise now feel hesitant to do so. But the market isn’t doom and gloom, even if the headlines are. An agent can help you separate fact from fiction.
How This Impacts You
If you’re wondering how today’s low inventory affects you, it depends on if you’re selling or buying a home, or both.
- For buyers: A limited number of homes for sale means you’ll want to seriously consider all of your options, including various areas and housing types. A skilled professional will help you explore all of what’s available and find the home that best fits your needs. They can even coach you through casting a broader net if you need to expand your search.
- For sellers: Today’s low inventory actually offers incredible benefits because your house will stand out. A real estate agent can walk you through why it’s especially worthwhile to sell with these conditions. And since many sellers are also buyers, that agent is also an essential resource to help you stay up to date on the latest homes available for sale in your area so you can find your next dream home.
Bottom Line
The low supply of homes for sale isn’t a new challenge. There are a number of long-term and short-term factors leading to the current inventory deficit. If you’re looking to make a move, connect with a real estate agent. That way you’ll have an expert on your side to explain how this impacts you and what’s happening with housing inventory in your area.
Momentum Is Building for New Home Construction
When you’re within the technique of searching for a house right this moment, you understand the supply of homes on the market is low since you’re feeling the influence of getting a restricted pool of choices. And, in case your greatest hurdle proper now’s that you just’re having bother discovering one thing you want, don’t neglect {that a} newly constructed house is a superb choice.
As a current article from the Nationwide Affiliation of Realtors (NAR) says:
“House consumers proceed to be met with restricted housing choices throughout what’s sometimes the actual property market’s busiest season. . . . The present provide of present properties is about half the extent it was in 2019 . . . In the meantime, the marketplace for new development is a shiny spot.”
Right here’s a take a look at a key metric that reveals simply how a lot new house development is ramping up nationwide. It’s referred to as new residential completions. Mainly, completions are newly constructed properties which might be completed and able to transfer into.
The graph beneath makes use of data from the Census to indicate the pattern of new-home completions over time, together with the long-term common for the variety of completed housing models (proven in black on the graph):
As you may see on the left (proven in orange), main as much as the housing crash, builders exceeded that common. The outcome was an oversupply of properties available on the market, so home values declined. That was one of many elements that led to the housing crash again in 2008.
Since then, the extent of recent house development has fallen off, and builders haven’t constructed sufficient properties to satisfy the historic common (proven in pink). That underbuilding left the housing market with a multi-year stock deficit. And, that deficit is a part of what makes stock so low proper now.
However, right here’s the excellent news. The inexperienced on the fitting reveals that in keeping with the latest report from the Census, builders are matching the long-term common proper now. And which means they’re bringing extra newly constructed properties to the market than they’ve in current reminiscence.
And residential begins and permits are additionally gaining momentum. Begins are properties the place the development has formally kicked off. Permits are properties the place builders are planning to interrupt floor quickly. Since each are up, it’s an indication there are much more newly constructed properties coming quickly.
What This Means for You
Extra newly constructed properties in varied levels of the development course of means your pool of choices simply bought larger. When you’re trying to transfer proper now and timing is vital to you, attain out to a neighborhood real estate professional to discover the properties that have been not too long ago accomplished in your space. If development is completed on these properties, it’s best to have the ability to transfer in rapidly.
However, when you can wait a bit and the concept of customizing a house from the bottom up appeals to you, ask that very same agent in regards to the properties in your space which might be within the technique of being constructed. When you purchase a house that’s nonetheless within the works, you may assist decide the options and finishings alongside the way in which. And when not one of the properties you’ve checked out to this point are to your liking, with the ability to tailor one to your style could also be the best choice.
Both means, a trusted actual property agent is an important a part of the method. They’ll know precisely what’s obtainable in your space and might base their suggestions in your distinctive wants, desired neighborhoods, and extra.
Backside Line
So, when you’re having bother discovering a house you want whereas stock is so low, it could be time to think about wanting into new-home development. If you would like to begin that dialog, attain out to a trusted native actual property skilled who’s an professional on what’s obtainable in your space.
Where Will You Go If You Sell? Newly Built Homes Might Be the Answer.
Do you need to sell your own home, however hesitate since you’re nervous you gained’t have the ability to discover your subsequent residence in right this moment’s market? You are not alone, however there’s some excellent news that will ease your worries. New residence building is up and is changing into an more and more vital a part of the housing stock.
Which means whenever you go to place your house in the marketplace this summer, contemplating newly constructed houses is essential for increasing the choices you’ll have on your subsequent transfer.
Close to-File Proportion of New Dwelling Stock
Newly constructed houses right this moment make up a near-record proportion of the overall variety of houses accessible on the market (see graph beneath):
In actual fact, as the information reveals, newly constructed houses now make up 31% of the overall for-sale stock. Over the previous couple of a long time, newly constructed houses made up a mean of solely round 13% of complete housing stock from 1983 to 2019.
Which means the proportion of the overall accessible houses which are newly constructed is over two instances larger than the norm.
Why This Issues to You
General, the provision of houses on the market continues to be low. And when there’s restricted provide, it’s essential to discover your entire accessible decisions. New-home building has emerged as a sport changer with growing stock. To not point out, latest data reveals it’s gaining much more momentum as extra newly constructed houses are underway and can be coming to the market within the months forward.
Robert Dietz, Chief Economist on the Nationwide Affiliation of Dwelling Builders (NAHB), highlights the significance of newly constructed houses for these seeking to purchase in right this moment’s housing market. Dietz states:
“With restricted accessible housing stock, new building will proceed to be a major a part of potential consumers’ search within the quarters forward.”
Don’t overlook this rising market phase and danger lacking out on nice alternatives to search out your very best residence. Since new residence building accounts for roughly 31% of complete on the market stock, you might be chopping almost one in three choices out of your search if you happen to don’t contemplate newly constructed houses.
In the event you’re seeking to make a transfer, an area actual property agent might help you sell your present home and discover newly constructed choices in your space. They’ve the experience that you must deal with either side of the method so you possibly can transfer out of your present home and into your brand-new dream residence.
Backside Line
Now’s the time to sell your own home and benefit from the momentum that’s constructing in new residence building. Attain out to a trusted actual property agent who can information you all through the promoting and shopping for course of so you may make your transition to a newly constructed residence a actuality.
It May Be Time To Consider a Newly Built Home
If you’re trying to buy a house in today’s market, you may find that there are very limited options available for sale. It might feel like an uphill battle to find the perfect home for you because there just isn’t that much to choose from. If you want to open up your options, then you should consider a newly built home. According to the latest data from the US Census, there’s positive news when it comes to new home construction. When you look at the first three months of this year, you’ll find that more new homes are completed and ready to sell. This gives you more options for your search, and builders have started construction on more single-family homes as well. This means that there are more homes intended for one household in the beginning stages of construction, allowing you the opportunity to customize one to your liking. And, while this is all good news for broadening your options for your home search, there are other perks that come with considering a newly built home.
When you buy a new home under construction, you can tailor it to your unique needs and taste. Building a home also means customizing it so you can have the certain kind of flooring, sunroom, or any other special amenity you have been dreaming of. Another perk of a new home is that nothing in the house is used. It’s all brand new and uniquely yours from day one. Moreover, because everything is new, you’ll likely find there are fewer maintenance and repair needs upfront. If something does go wrong with your new home, many builders also include additional home warranties. Lastly, building a home gives you the opportunity to incorporate more energy-efficient options that can help lower your costs over time.
If you’re having trouble finding your dream home in today’s market, it may be time to consider newly built homes as an option. Partner with a real estate professional to learn more about what’s available in your local area.
Should You Consider Buying a Newly Built Home?
If you’re thinking about buying a home, you might be focusing on previously owned ones. But with so few houses for sale today, it makes sense to consider all your options, and that includes a home that’s newly built. Continue reading…
Where Will You Go If You Sell? You Have Options.
There are plenty of good reasons you might be ready to move. No matter your motivations, before you list your current house, you need to consider where you’ll go next. Continue reading…
Why It May Be Time To Add Newly Built Homes to Your Search
If you put a pause on your home search because you weren’t sure where you’d go once you sold your house, it might be a good time to get back into the market. If you’re willing to work with a trusted agent to consider a newly built home, you may have even more options and incentives than you realize. That may be why the National Association of Home Builders (NAHB) says the share of buyers looking for new construction is increasing:
“According to the quarterly Housing Trends Report, the popularity of new construction homes is continuing to rebound . . .”
Here’s a few reasons more buyers may be drawn to newly built homes.
More Options To Choose from and Potential Builder Incentives
When looking for a home, you can choose between existing homes (those that are already built and previously owned) and newly constructed ones. While the inventory of existing homes has increased this year, it’s still below more typical years like 2019. Currently, according to the National Association of Realtors (NAR), there is a 3.2-month supply at the current sales pace. For reference, a roughly 6-month supply is considered a balanced market, leaving us in a sellers’ market today.
While it’s a smaller segment of the overall inventory of homes for sale, the supply of newly built homes has grown even more. The National Association of Home Builders (NAHB) explains:
“New single-family home inventory remained elevated at a 9.2 months’ supply (of varying stages of construction). A measure near a 6 months’ supply is considered balanced.”
Here’s why this matters for you. While you have more homes to choose from in either category, there’s one extra benefit of newly built homes. Because the inventory of newly built homes has grown so much, builders are motivated to sell their properties before they build more.
Back in the housing crash of 2008, builders were building too many homes, and that oversupply is part of what contributed to the housing bubble bursting. Now, builders don’t want to have a surplus of inventory in their pipeline, and many are offering buyers incentives to help move that inventory along. As Doug Duncan, Chief Economist at Fannie Mae, explains:
“. . . a continual increase in the number of completed homes available for sale is now occurring, with the inventories of such homes now at the highest level since July 2020. . . . This suggests to us that builders may be increasingly willing to offer more aggressive incentives and discounts to maintain sales of completed inventory.”
While specifics will vary by builder and market, some buyers are seeing builders reduce prices and offer incentives. To find out what’s available in your area, lean on a trusted real estate professional.
Lifestyle Benefits of Buying a Newly Built Home
In addition to more supply and the potential for builder incentives, newly built homes have various benefits that may suit your lifestyle. For example, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. That can free up time for you to do other things you’re passionate about.
Another perk of a new home is that nothing in the house is used. It’s brand new and uniquely yours from day one. You’ll have all new appliances, windows, roofing, and more. These things can help lower your energy costs, which can add up to significant savings over time. You may even have the latest and greatest technology features built into your new home.
Builder sums up why some buyers today are turning to newly built homes:
“For some, it’s the lure of something new and modern. For others, it’s the move-in ready experience. And now there’s another factor to consider when making this decision: technology.”
If any of these benefits appeal to you, it’s time to connect with a trusted real estate advisor to learn more.
Bottom Line
If you’re considering a newly built home, let’s connect so you have an expert guide on what’s available in our local market. Together we’ll explore your options and the benefits of an all-new home.