How BuyingNew Construction Homes Can Help During the Affordability Crisis
Are you on the hunt for a new home this spring? If so, you might be feeling the pinch of current affordability issues and the frustration of a sparse housing market. But what if there was an alternative that could ease both of these concerns?
For those finding it difficult to locate the perfect home, or for whom mortgage rates are a significant financial strain, considering newly constructed homes could be a wise move. Here’s the rationale.
A Glimmer of Hope in New Home Inventory
In the quest for a new home, buyers typically weigh the pros and cons of existing homes (those previously owned and occupied) against newly constructed properties. Although the inventory of existing homes has seen a slight uptick this year, it remains below the levels observed in more stable market periods, such as 2018 or 2019.
For those aiming to broaden their search, newly constructed homes present a viable option. Danielle Hale, Chief Economist at Realtor.com, notes:
“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”
Encouragingly, the availability of newly constructed homes is on the rise. Data from the Census highlights a significant uptick in new home construction across two critical metrics (illustrated by the recent surge in green in the graphs below):
Both the initiation of new construction projects and the completion of homes have experienced notable increases. Whether you’re looking for a brand-new, ready-to-move-in home or wish to personalize your home during the construction phase, the current market offers ample choices.
Builders Extend Incentives to Enhance Affordability
Moreover, builders are now offering incentives such as mortgage rate buy-downs and additional perks to attract homebuyers. These incentives aim to mitigate the current affordability challenges and facilitate the purchase of your ideal home. Mark Fleming, Chief Economist at First American, highlights the flexibility builders have in offering these incentives:
“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”
A report from HousingWire further underscores the prevalence of sales incentives, noting an increase in their use among builders:
". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. "
However, purchasing from a builder differs from buying from a homeowner, making it crucial to work with a local real estate agent. Builder contracts can be intricate, and a reliable agent will advocate for you throughout the process.
Your agent will serve as a valuable resource, offering insights into construction quality and builder reputations, assisting with contract reviews and negotiations to secure the best deal, advising on worthwhile customizations and upgrades, and much more.
Bottom Line
If you’re facing difficulties in finding a suitable home or navigating affordability issues, exploring newly constructed homes might be the solution you need. Connect with Countryside Homes NJ and RE/MAX Select and let’s discuss whether this option could be right for you.
Client Testimonials for Countryside Homes NJ
At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.
Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.
As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!
From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!
Contact a Real Estate Agent
Heather Montalbano
Real Estate Sales Associate
Cell: 973-796-4947
RE/MAX Select
Office: 973-625-0450
Keith LaBrunda
Real Estate Sales Associate
Cell: 973-476-4182
RE/MAX Select
Office: 973-625-0450
RE/MAX Select - Rockaway, NJ
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Preferred Partners
Denise Damato-Sulzer is a seasoned insurance professional with Select Advantage Insurance Agency, a leading provider of comprehensive insurance solutions. With years of experience in the industry, Denise has honed her expertise in a wide range of insurance products, including home,
Colleen Waid, owner of Dazzle by Design Home Staging, believes in the power of good design without the necessity of a hefty price tag. She specializes in creating elegant and stylish rooms by rearranging existing furniture, emphasizing focal points, and
Bruce Oliver is a highly skilled mortgage professional with Bond Street Mortgage, a leading mortgage lender known for its exceptional service and competitive rates. With a strong background in finance and real estate, Bruce has become an expert in various
Countryside Homes NJ is proud to recommend Ryan Sturzebecker and his company, Alliance Home Inspections, as a preferred partner. Ryan, the owner and principal inspector, is dedicated to delivering top-tier customer service with a focus on helping clients understand the
For over 20 years, Mark Scocco has been involved in multiple facets of real estate and lending. It’s this diverse experience that you can rely on to help guide you through your mortgage transaction from qualification to closing. Mark will
Bill Crowell is a dedicated and experienced account executive at Land Quest Title, a leading title insurance and settlement services company. With a strong background in real estate and finance, Bill has been instrumental in the company’s growth and success
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