Builders Adapt to Demand for Affordable Homes
In today's housing market, affordability is a significant concern for buyers. Two key factors contributing to this challenge are higher mortgage rates compared to recent years and escalating home prices due to limited inventory. To address these hurdles, many buyers are actively collaborating with real estate agents to discover more affordable housing options, often considering newly built homes.
Growing Interest in Affordable Newly Built Homes:
The market is witnessing a growing preference for newly built homes, particularly those in lower price ranges. While affordability remains a challenge, data from the Census reveals a notable shift. In June, a higher percentage of newly built homes sold at lower price points compared to the previous year. Specifically, last year, only 58% of newly built homes sold for less than $500,000, while in June, this number increased to 65%.
Builders Adapt to the Demand:
Builders have responded to this trend by introducing lower-cost housing options. George Ratiu, Chief Economist at Keeping Current Matters, notes that builders are actively working to provide slightly smaller homes, targeting lower price points.
This shift is further validated by recent Census data, which indicates a decline in the median sales price of newly built homes in recent months. Builders that embrace this trend are creating opportunities for buyers to afford entry-level homes in various areas.
The Role of a Real Estate Agent:
To navigate these changes and discover affordable housing solutions, partnering with a local real estate agent is invaluable. An agent can provide insights into newly built homes, including those currently under construction. They possess the knowledge to guide you through builder reputations, contract negotiations, and more, streamlining the home-buying process.
Bottom Line:
If you're searching for a home within your budget, it's crucial to connect with a real estate professional who has a deep understanding of the local inventory. They can assist you in exploring newly built and under-construction homes, ensuring you make an informed decision while addressing affordability concerns in today's housing market.
