As someone deeply immersed in the real estate landscape, I want to share why the fourth quarter emerges as the prime season for acquiring new construction homes. This strategic period unveils a myriad of advantages, including enticing builder incentives, price reductions, and rate buydowns, according to insights from seasoned realtors.
In the current real estate climate, where existing home supplies are limited, prospective buyers are increasingly turning to new construction for a broader range of options. This is the best time of year to buy.” Builders, nearing the end of their fiscal year, aim to clear their inventory to prevent carrying over debt, providing an opportune moment for savvy homebuyers.
Additional perks that some builders offer during this period. From assistance with closing costs to upgraded features such as appliances, carpeting, or blinds, there’s a window of opportunity to secure noteworthy concessions.
While new homes boast modern finishes and energy-efficient features, it’s crucial to acknowledge potential downsides, including longer commutes and smaller yards. However, with 30 percent of homebuilders utilizing interest rate buydowns in the second quarter, according to Lawrence Yun, Chief Economist of the National Association of Realtors, the overall outlook for new-home sales is projected to increase by 12% in 2023 and 14% in 2024.
Furthermore, insights from the National Association of Home Builders/Wells Fargo Housing Market Index reveal that 55 percent of home builders are actively using incentives to boost sales. These incentives range from reduced mortgage rates to added perks like free home upgrades, with a quarter of builders reporting an average price decline of about 6%.
In assessing the advantages of new construction, the aging state of Denver metro’s existing housing stock, with a median age of 40 years. For buyers seeking existing homes in need of renovations, this often translates to additional costs for upgrades. In contrast, new construction homes offer a host of advantages, including new systems (HVAC, water heaters, and appliances) and warranties, all built with the latest technology to withstand various environmental challenges.
In conclusion “Apples to apples, new builds are the way to go right now.” The substantial savings through concessions and buydowns, coupled with the assurance that replacements won’t be necessary for several years, make new construction a compelling choice for prospective homebuyers.
Check for new home builds here:
https://www.realtor.com/realestateandhomes-search/Denver_CO/shw-nc
