Shifting Tides: Market Dynamics Ignite a Surge in New Home Interest
Lack of supply in the resale market is favorably impacting new home sales. In September 2023, the pace of new home sales was up 33.9% year over year to a seasonally-adjusted rate of 759,00 units. The median new home sale price in September was $418,800, down 12.3% compared to a year ago, largely due to builder incentives and a shift toward building slightly smaller homes. Meanwhile, existing, or pre-owned home sales sank 15.4% from the previous year, yet existing home prices rose slightly to $394,300.
New home construction is typically more expensive than existing homes of similar size, condition, and amenities, but homebuyers are flocking to new homes because the costs and benefits between existing homes and new homes has narrowed. According to NewHomeSource.com, new home buyers get numerous benefits, including:
- The ability to choose the finishes, fixtures and decor
- A “honeymoon” period when everything in the house is brand new
- Builder-supplied warranties for finishes, systems and structure
- Energy-efficient heating, ventilation, cooling and appliances that will save you money
- The latest in architecture, design, floorplans, construction techniques, and in-home automation.
In the overheated market of the past few years, shopping for a home has become wearisome to homebuyers, including some buyers’ remorse caused by unexpected issues with the home, too much maintenance and upkeep, and too many compromises simply to get into a home.
Ask Jane At The Lake, your Berkshire Hathaway HomeServices network professional to show you new homes in your area. Don’t visit builders or model homes without your agent, so they can negotiate for you.
