Home buyers with tight resale properties to choose from may want to consider new construction. What are some of the positives?
New home construction is about a third of the national single-family inventory since 2021. Large homebuilders can also offer mortgage rate buy downs. This is done through using the homebuilder’s lender and getting an interest rate reduction paid for by the builder. For example, 61% of builders can buy down mortgage interest rates to the 5% interest range.
One of my current clients just bought a Taylor Morrison home in the San Francisco Bay Area and had this done for her. Taylor Morrison devotes about $20,000 to buy down a homebuyer’s mortgage rate. For an existing re-sale house, a seller would have to discount their home up to $60,000 to get the same monthly payment that a builder does with a rate buy down.
Another option builders are doing are building, smaller homes, which help new home prices compete with existing home prices. The smaller homes might be on a smaller footprint where builders are building more homes and smaller lots. This might mean a smaller side or backyard but are more affordable.
New homes may be the way to go, and it still means your real estate agent can guide you through the process, even if it means selling your existing house, or being a first-time homebuyer. I am there from the beginning, starting from your new home search, to sitting at the title escrow office and getting your keys to your new house!
