New Construction Is 30% Of The Market–Here's How People Are Getting Better Prices At $1,252 In Monthly Savings

Nearly one-third of homes for sale are now new construction, with many properties offering better value than their older counterparts. The move comes as builders respond to affordability concerns and adapt to changing market conditions.

Cliff Johnson, vice president of new homes and rentals at Realtor.com, said that the scarcity of existing homes is a key factor driving their prices. “Builders have seen the affordability issue on the horizon for quite some time,” Johnson said in a Realtor report. “Many have adapted and responded with more reasonably priced homes.”

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Before the Federal Reserve’s historic rate cut last week, the recent high mortgage rates had deterred some potential buyers. In response, builders with properties to sell now offer various incentives to attract purchasers.

The incentives can translate into real savings for buyers. Developers offer to cover portions of closing costs, provide free upgrades on materials or even buy down mortgage rates. Such deals can amount to substantial discounts on the overall cost of a new home.

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Nikki Beauchamp, an associate broker at Sotheby’s International Realty in New York City, has leveraged the incentives to her clients’ advantage. “I was able to get concessions for storage – which is usually purchased – and a discount on a parking spot,” Beauchamp told Realtor.

Timing can be important when seeking the best deals on new construction. Builders often incentivize early purchases in developments that have yet to be completed. Additionally, the colder months, when builders are less busy, can yield better bargains.

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Bob Seeman, vice president of sales for new homes at Realtor, noted that the end of a builder’s fiscal year can be an opportune time for buyers. “They want to show strong results for the whole year,” Seeman explained. “[Once] the summer buying season has ended, the incentives are often in place to extend that buying season.”

However, experts caution against getting carried away with upgrades. Christina McCollum, a producing market leader at Churchill Mortgages, advises buyers to be wary of selections that could balloon the sale price. “Ultimately, you need to understand the difference between wants and needs and make selections that work for your budget,” McCollum said.

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Working with an experienced agent can be beneficial for those considering new construction. Agents can provide insight into which elements might be most negotiable and at what point in the development cycle.

As the housing market continues to evolve, new construction homes coming online are becoming unexpectedly affordable options for many buyers.

With the right timing, negotiation skills and professional guidance, homebuyers may find a brand-new home within closer reach than they thought.

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