Is it time to consider a New Construction Home?
Are you considering selling your home and buying a new construction home in Chesapeake, Virginia Beach or Moyock? South Hampton Roads has many options for those interested in buying a new construction house. Working with a top real estate agent, gives you more options, incentives and bargains than you realize when considering new construction.
“Higher interest rates have significantly weakened demand for new homes as buyer traffic is becoming increasingly scarce.”
-Jerry Konter, the NAHB Chairman
National Association of Home Builder Sentiment drops for 11th Consecutive Month
The newest survey of NAHB members for November shows builder confidence has fallen again. The survey is based on market conditions concerning the sale of new construction homes, the expected market conditions over the next 6 months and current traffic of buyers of new homes. These three components are used to calculate the index, anything greater than 50 shows home builders believe the conditions are favorable for builders. The current survey came in 5 points below October’s survey at a jaw dropping 33 points.
With the low confidence score, you can only imagine that it was reported 59% of builders surveyed stated that they are now using incentives to attract more buyers. The top incentives builders reported using were paying points for buyers, mortgage rate buy-down, and price cuts.
Why choose a New Home Instead of an Older Home?
Currently, according to the National Association of Realtors, preexisting homes are sitting at a 3.2 - month supply of current sales. A 6-month supply would be a balanced market. Therefore, the current market conditions for preexisting homes is in a Seller’s Market.
In contrast, new single family home inventory is elevated and is at a 9.2 month’s supply. Once again, referring to a 6-month supply as “balanced”, the new construction inventory shows that buyer’s have more options and negotiation power. Builders are motivated to sell this high supply of new construction homes before building more. Incentives and reduction in prices will vary from market to market but a knowledgeable Realtor can guide you through your options.
Outside of the inventory, newly built homes have many lifestyle benefits. New communities being constructed in South Hampton Roads are incorporating resort style amenities. The new Dragas community, Hickory Manor in Southern Chesapeake, offers residents a private community center, resort style pool with cabana and outdoor kitchen, children’s playground and 24/7 community fitness center.
Another perk of a new home is that its NEW. You will relish that there are few to no repairs to tackle, like repainting, fixing leaky faucets or random home improvements. A new roof, appliances, windows, siding and more gives you the peace of mind knowing that each item has a long life left, saving thousands of dollars on replacing large ticket items like you would need on a preexisting home. All of this frees up your time to enjoy things that really matter to you.
If you are considering looking at new construction homes for sale, working with an expert Realtor should be your top priority. For buyers, the impact of demand cratering, brings a slew of incentives along with lower home prices. An expert negotiator on the buyer’s side when buying a new construction house in the current market conditions will prove to be your best resource.
Looking to sell your home or buy in South Hampton Roads? Sell Made Simple Real Estate is grateful to serve all of South Hampton Roads, including Chesapeake, Virginia Beach, Norfolk and Moyock in North Carolina!
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