Just last month, U.S. Today reported homebuilders estimate the next six months will bring the highest level of sales they’ve experienced in the last 10 years.
Nationwide, the brutal winter caused nearly all construction sites to shut down and buyers to stay home. However, the sell-tides changed as Mother Nature brought a warm summer. Demand for new homes has skyrocketed, resulting in robust confidence among builders.
Additionally, the previous slowdown in production has lead to a limited supply of available homes for sale. This is effectively driving up prices. “Over the last 12 months, the median sale price for new homes has risen by 8.3 percent to $297,300,” reported Alex Veiga in his article, ‘Homebuilders’ confidence in sales surges in June’.
A drop in unemployment is also attributed to the new home buying surge. “Employers have added more than 3 million jobs as the unemployment rate has steadily dropped to 5.4 percent,” reported Veiga.
While new homes only represent a fraction of the housing market, their scarcity reflects the lack of current homes available for sale. In addition, their production has a huge impact on the economy. If you’re looking to buy new, shopping sooner rather than later might be your best option.
There are some big differences when your looking at buying a new home or a current home that need to be taken into account. In most cases, buying new comes with a bigger price tag. Additionally, if you’re looking for any special touches – such as certain appliances, custom cabinetry or a special floor plan – be ready to pay more.
However, the larger upfront cost can often mean savings down the line. With a new home, it typically takes you longer to incur the hefty maintenance costs associated with older homes. For those who aren’t very handy, this might prove to be a very attractive option.