August 18, 2023
As housing inventory continues to be tight, creating a seller’s market even with higher interest rates, many prospective homeowners are turning to newly constructed homes. Recent reports indicate that home builders are starting to build more homes for these buyers, which over time can help ease the strain on available homes.
If you have been searching for a new home but continue to find the lack of affordable options to choose from daunting, building a new home may be right for you. Here are some considerations for building a new home versus buying an existing home in a tight market.
Others were either priced out of the market or were already happy with their homes refinanced to the low rates and are now in better financial position. They too are not as inclined to sell now.
Both factors are causing fewer existing homes to be available, creating more competition for homes that are for sale and continuing to drive higher selling prices.
On top of that, new home construction gives you more cost certainty. While building a new home is typically more expensive, high existing home prices have narrowed that gap. Building a home with a locked in price gives you better cost certainty that fits within your budget. Plus, many home builders partner with preferred lenders that know the area, the quality of the builders’ work, and can work with you directly to find the best financing options for your budget.
By working with your builder to make changes to the floorplan and other house configurations you prefer to have, you can have a move-in ready home the way you want it from day one.
Whether building a new, custom home, one in a builder’s community, or buying an existing home is your preference, speak with your local mortgage lender to determine the best way to finance your purchase, including grants and other down payment and closing cost options available to you.
