Newly Built Seattle Homes Could Be a Game Changer This Spring

Thinking of purchasing a home this spring? With today’s affordability challenges and limited inventory, finding the right home can be daunting. However, there’s a solution that addresses both issues.

Struggling to find your dream home amidst rising mortgage rates and budget constraints? Consider exploring newly constructed homes. Here’s why it could be the perfect solution for you.

New Home Construction Is an Inventory Bright Spot

When searching for a home, you have the option of choosing between existing homes (previously owned) and newly constructed ones. Despite an increase in the number of existing homes for sale this year, the inventory remains lower compared to more typical years in the housing market, such as 2018 or 2019.

So, if you’re looking to expand your pool of options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:

“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”

The encouraging news is that there is currently a wider selection of newly built homes available. Utilizing data from the Census, the graphs below demonstrate the significant increase in new home construction in two crucial areas (see most recent spike in green):

Recent data indicates a notable surge in new home starts, representing homes where construction has recently commenced. Additionally, completions, referring to homes that builders have just finished, have also experienced a significant uptick. This presents an opportune moment for those seeking a new, move-in ready home or wishing to customize their build from the early stages, as there are now more options available.

Builders Are Offering Incentives To Help with Affordability

In addition, builders are enhancing their offers with incentives such as mortgage rate buy-downs and other attractive perks for homebuyers. These incentives serve to alleviate current affordability concerns while facilitating your entry into your ideal home. Mark Fleming, Chief Economist at First American, sheds light on why builders may have greater flexibility to provide additional benefits compared to typical homeowners:

“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”

An article from HousingWire also says this about what builders are offering right now:

 “. . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. “

It’s essential to note that purchasing from a builder differs from buying from a traditional home seller, necessitating the assistance of a local real estate agent. Builder contracts can be intricate, and a reliable agent will serve as your advocate every step of the way.

They’ll serve as your primary resource for guidance on construction quality and builder reputation, as well as for reviewing and negotiating contracts to secure the best deal for you. Additionally, they’ll assist you in determining which customizations and upgrades are most beneficial, among other valuable services.

Bottom Line

If you’re facing challenges in finding a home to purchase or grappling with affordability issues in today’s market, let’s connect to explore whether newly constructed homes could offer the solution you seek.