New Home Construction: Your Best Opportunity Yet

New home construction today offers buyers a unique opportunity. It feels like buyers are finally getting a real shot at both the home they want and the deal they need. There are more brand-new options on the market right now, and builders are rolling out incentives that make these homes more affordable than many expect.

This combination doesn’t come around often. It’s putting buyers in a surprisingly strong position this season. Here’s why this moment matters and why it’s worth partnering with your local agent to take advantage of it.

More New Homes Are Available Now – and That May Not Last

There’s more new construction on the market today than usual. For buyers, that means:

• More cutting-edge communities

• More move-in-ready homes

• More floor plans to choose from

• More upgraded designs and modern features

  
  

However, this variety may not last. Data from Zonda shows that even though it feels like new homes are popping up everywhere, builders have started pulling back. The number of starts (when builders break ground) has been slowly declining over the past few years. This is good because it prevents overbuilding nationally.

Here’s the real insight that can give you an edge. Forecasts indicate that this slight downward trend should continue next year (see graph below):

This signals that the new inventory we have now may be your widest pool of all-new options for a while.

Today, Redfin reports that roughly 1 in 3 homes (27%) on the market are new builds. This is higher than the norm, but it’s the lowest share in four years. It makes sense based on the graph above.

If you want more options to choose from, now’s the time to look. If you're wondering: why the pullback? It’s simple. Since there are already more new homes for sale than usual, builders want to focus on selling down the supply they already have rather than adding more new homes. This leads us to the next point.

Builder Incentives Just Hit an All-Time High

Here’s where things get even better for buyers. To ensure the inventory they have now keeps moving, builders are offering incentives at levels not seen in years. Many of these perks directly help buyers with affordability. Buyers today are getting:

• Lower Prices: Builders are dropping prices on their brand-new homes to attract buyers.

• Help with Closing Costs: Some builders are covering thousands of dollars in fees to reduce the upfront cost of buying.

• Extra Upgrades: Think premium finishes, appliance packages, and designer features, all added at no extra cost.

• Mortgage Rate Buydowns: This is when the builder pays to get you a lower mortgage rate, reducing your monthly payments and improving affordability.

  
  

You don’t have to rely on luck to see these types of perks. The truth is, the vast majority of builders are offering advantages like these right now. According to the National Association of Homebuilders (NAHB), 65% of builders say they’re using some type of sales incentive. They report:

“. . . 41% of builders reported cutting prices in November, a record high in the post-Covid period and the first time this measure has passed 40%.”

This is significant. It shows how willing builders are to negotiate right now. If you look closely at the graph, you’ll notice the use of incentives typically falls in the early part of the year as buyer demand rises going into spring. So, you have an edge if you act now. This may be your ideal window to find the most options and better prices.

If you lean on your own agent and are savvy about what you ask for, you could walk away with some of the best perks buyers have seen in years. When every dollar counts and any incentive helps your bottom line, that's worth looking into.

More options and more savings = an offer too good to pass up.

Understanding the Market Dynamics

The Importance of Timing

Timing is crucial in real estate. The current market conditions are favorable for buyers. With builders offering incentives and a wider selection of new homes, this is one of the best times in years to buy a new build.

The Role of Your Agent

Having your own agent (not the builder’s representative) makes the sale and negotiation process much easier for you. They can provide valuable insights and help you navigate the complexities of the market.

The Future of New Home Construction

Looking ahead, it’s essential to stay informed about market trends. Builders may adjust their strategies based on demand and economic conditions. Keeping an eye on these changes can help you make informed decisions.

Conclusion

With most builders offering generous incentives and a wider selection of new homes for sale, buyers may be looking at one of the best times in years to buy a new build.

Let's connect if you want to know which communities, builders, and incentives offer the most value today.

If you could have a brand-new home for less than you may expect, would you be interested?