We have a message for those homebuyers who feel locked in by current mortgage rates, but who are also looking to upsize or consider multigenerational housing, the time is now to consider a new home. There are so many benefits to new homes and we understand that it can be a confusing process, but you are far from alone. With such limited inventory in The Research Triangle Park, we are seeing many new developers offering their own favorable financing structures, good deals, and terms worth moving now for. Here are even more statistics and considerations for moving into a new construction home.
Near-Record Percentage of New Home Inventory:
According to the latest report from the National Association of Home Builders (NAHB):
"Newly built homes available for sale accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average." This is more than double the typical rate and census data also indicates a rise in both housing starts and completions, which is how we measure those beginning developments.
Many do not understand that since the housing recession in 2008, for developers to obtain financing was much more difficult and the housing starts and completions slowed dramatically. With millennials starting families and joining the market, they are increasing competition and the need for housing, without enough inventory.
How This Helps You:
Existing homes on the market in the Triangle are relatively scarce and any surge in new construction is an advantage because there is more to choose from. You also have the advantage of choosing your home top to bottom and incorporating environmentally friendly elements that so many millennial and new buyers are looking for. Additionally, as we mentioned above, some builders are currently offering incentives such as mortgage rate buy-downs, which can make homes more affordable.
Patrick Duffy, Senior Real Estate Economist at U.S. News, speaks to this practice here,
"Builders have been using mortgage interest rate buydowns for many years as a sales incentive whenever interest rates are relatively high. Today, more builders are offering rate buydowns for the entirety of the loan, allowing buyers to finance more homes for the same payment amount."
While this sounds like all great news, it is equally important to recognize the difference between buying a new home and buying an existing home. You DO need a Buyer Broker when buying directly from a developer. They represent your needs and understand the complications, the advantages of upgrades, and more in new home acquisitions. The onsite agent works for and is paid by the builder, they aren't there to represent you or assist you if problems arise. My NC Homes not only has experience as a new home broker but also as a contractor and understands the implications of your decisions. Contact us today to explore the new home opportunities in the Triangle.
Posted by Larry Tollen on
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