New home? Act now
Home buyers considering new construction should act now. According to new data, new homes have dropped to their lowest point in 12 months, decreasing nearly 7 percent since March.Verify your new rate (Nov 29th, 2020)
How much buying new costs
According to data from the Census Bureau, new homes have a median price of just over $312,000 right now – steady with April 2017’s numbers and the lowest point in the last year.
Realtor.com’s chief economist, Danielle Hale, some new homes are even more affordable, with 5 percent listed under $150,000. It’s the largest share of new construction properties in this price range since 2016.
And that could be a sign of good things to come – particularly for first-time buyers.
“This could be a sign that builders are trying to build at lower price points,” Hale said. “The largest share of home buyers and home shoppers in the market are looking to buy entry-level homes.
New construction vs. existing homes
For buyers on a budget, buying an existing home may still be their best bet. Despite hitting their lowest point in the last year, new construction properties are priced 24.8 percent higher than the average existing home, which comes in at $250,400.
According to Realtor.com, the extra costs come from “pricier finishes and appliances” and the lack of wear and tear on new homes.
It could also be due to a lack of supply. The number of new homes sold and for sale dropped 1.5 percent in April.
As Len Kiefer, Freddie Mac’s deputy chief economist puts it, “The absolute level of [new home] sales remains quite low compared to current demand levels and the overall population, but you can’t sell what hasn’t been built.”Verify your new rate (Nov 29th, 2020)
Get today’s mortgage rates
Interested in buying new construction? Prices are low, so act fast. Shop around and see what you rates qualify for today.Verify your new rate (Nov 29th, 2020)