If you’re currently searching for a home and finding limited options due to low housing inventory, it’s worth considering the benefits of new home construction. While existing home supply remains low, the market for newly built homes is thriving, offering you a broader range of choices.
According to a recent article from the National Association of Realtors (NAR), the supply of existing homes for sale is significantly lower than in previous years, while new construction stands out as a bright spot in the real estate market. The article emphasizes the importance of new residential completions, which represent newly built homes that are finished and ready for occupancy.
Looking at the graph provided, you can observe the trend of new home completions over time. It demonstrates how builders surpassed the long-term average (shown in black) prior to the housing crash, resulting in an oversupply of homes and subsequent decline in home values. Since then, the level of new home construction has fallen, leading to a significant inventory deficit in recent years.
However, the graph also indicates positive developments. The green portion on the right illustrates that builders are now matching the long-term average, bringing more newly constructed homes to the market than in recent memory. Additionally, residential starts and permits are gaining momentum, suggesting that even more newly built homes will become available soon.
What does this mean for you as a homebuyer? The increase in newly constructed homes in various stages of completion expands your pool of options. If you’re looking to move promptly, you can explore recently completed homes in your area. These homes are ready for immediate occupancy, allowing for a faster transition.
On the other hand, if you can wait and prefer the idea of customizing a home from the ground up, inquire about homes that are currently under construction. By purchasing a home that is still being built, you have the opportunity to select features and finishes according to your preferences. This customization option can be particularly appealing when none of the existing homes meet your requirements.
Throughout this process, it is essential to work with a trusted real estate agent. They possess local market knowledge and can provide recommendations based on your specific needs and desired neighborhoods. Whether you choose a completed home or one under construction, an experienced agent will guide you every step of the way.
In conclusion, if you’re struggling to find a home you like due to low inventory, exploring new home construction can offer you a wider range of choices. To initiate the conversation and work with an expert who knows what’s available in your area, let’s connect today.
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