Great News For First Time Home Buyers: More Affordable New Home Construction
For many home buyers, purchasing a brand new move in ready home would be their first choice. Buyers are able to customize these homes to their liking before moving in and everything is brand new, which leads to lower maintain costs. However, the past two decades have shown that many cannot afford the high price tag of new construction
This is an issue that many home builders have been taking notice of, and are beginning to make things more affordable. The median sticker price for newly constructed homes was $278,800 in January, down 4.5% from a year earlier and 5.7% from December, according to a recent report from the U.S. Department of Commerce. This is a direct result of many builders offering entry level new homes which appeal to many more people, than the luxury market, which was previously targeted.
People have become tired of going for preowned homes, and have opted for the easier route of walking into to a builders office and signing a contract. This is a process that many people prefer because you will not be outbid and there are far fewer hangups. Evidence of this shows that in January there were 22,000 new homes for sale in the southeast alone.
I would expect as new home builders realize that more buyers are opting for new affordable construction, we are going to see an even bigger boom in the amount of new homes built. A much needed relief for first time home buyers and home buyers in general this year.