Why Now Is a Strong Time To Buy a New Construction Home
1. New-Home Inventory Is Higher Than Usual
There is currently a larger-than-normal supply of new construction homes on the market, giving buyers access to:
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More modern communities
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More move-in-ready properties
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A wider variety of floor plans
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Updated designs and contemporary features
However, recent data shows that builders have begun reducing housing starts, and forecasts indicate this downward trend will continue. This suggests today’s selection of new homes may be the widest available for some time.
Redfin reports that approximately 27% of homes on the market are new builds, which is above average but the lowest share in four years. Builders are slowing production to avoid oversupply and focus on selling existing inventory.
(see graph below):
2. Builder Incentives Are at Record High Levels
To help move current inventory, many builders are offering incentives that directly improve affordability for buyers, including:
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Price reductions
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Closing cost assistance
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Complimentary upgrades and premium finishes
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Mortgage rate buydowns to lower monthly payments
According to the National Association of Home Builders (NAHB), 65% of builders are offering incentives, and 41% reduced prices in November, the highest percentage since the post-Covid period.
Incentive usage typically declines heading into spring as demand rises, so buyers acting now may secure stronger savings and better terms.
That’s a big deal. It shows how willing builders are to negotiate right now.
And if you look closely at the graph, you’ll notice the use of incentives typically falls in the early part of the year, as buyer demand rises going into the spring. So, you have an edge if you act now. This may be your ideal window to find the most options and better prices.
If you lean on your own agent and you’re savvy about what you ask for, you could walk away with some of the best perks buyers have seen in years. And when every dollar counts and any incentive helps your bottom line, that’s worth looking into.
More options and more savings = an offer too good to pass up.
Bottom Line
With a larger supply of new homes and builder incentives at peak levels, buyers may be experiencing one of the most favorable times in years to purchase new construction.
If you’d like personalized insight into which local communities and builders are offering the best value, now is an excellent time to connect with an agent who represents your interests.
If you could purchase a brand-new home for less than you expected, would you want to explore the options?
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
