Q: What’s the New Construction Market Doing?

Here’s everything you need to know about new construction right now. 

With interest rates historically low, buyer demand remains high in our market. Furthering this demand is the fact that more buyers than ever before have the freedom to work remotely, which means that they don’t have to settle for a cramped apartment in the city—they can use their increased purchasing power to move wherever. Resale inventory is still scarce, so all of this demand has begun spilling over into the new construction market. 

From Riverside County all the way down to Temecula, we’re seeing a lot of new construction homes. Recently, I joined clients of mine to go look at some new construction homes, and this outing gave me a pretty good idea of what’s been happening in this sector of the market as of late. 

For example, in Bellflower, you can get a 1,500-sq ft. home that costs you roughly $600,000 or more. If you were to move over to Murrieta, Menifee, or Lake Elsinore, you’d find some 2,500-sq ft. homes with four bedrooms, three bathrooms, and a three-car garage for less than $500,000. 

Just like the resale market, the new construction market is incredibly hot. As a result, some of the attractive and wide-ranging incentives that builders regularly advertised have virtually disappeared; the buyers are out in force, so there’s no need to lure them in with special deals. (First responders, however, are still able to receive a few thousand dollars’ worth of incentives). 

  If you’re willing to be patient and make peace with little to no buyer incentives, the price for a new construction home is great.

Instead of building lots as they go, builders today are finishing lots and laying roads ahead of time because they know there will be scores of people lining up to buy space in whatever new community they create. That said, the homes themselves are still customizable—just like in a fine restaurant, you’re not being served pre-cooked and reheated meals. 

Builders are still providing the lender incentive, which is roughly 3% of the purchase price.

That’s great, but consider that you could get a loan for a resale home at 2.25% or 2.375% and use

equity to make any upgrades you want down the road. I have plenty of experience negotiating with

builders, so I’m ready to help protect your interests throughout the new-build process, but it’s

important that you as a homebuyer weigh all your options carefully. 

Another factor to keep in mind is time; if you buy a new construction home, you’ll have to wait six

to nine months before moving in because there’s simply no existing homes for you at the moment.

However, if you’re willing to be patient and make peace with little to no buyer incentives, the price

for a new construction home is great. If you’re seeking a more affordable home, move into Inland

Park, where you’ll find those 2,500 sq ft. homes are starting as low as $480,000. 

If you’d like to know more about which areas are prime hunting grounds for new build buyers or

how to negotiate with the builder in a market like this, don’t hesitate to call, text, or email me. I’m

always happy to be a resource for you. 

No comments :

Post a Comment