Low Mortgage Rates
In 2020, Mortgage rates started to see a new historic lows as rates when down below 3%. As the economy started to recover from the impact of the pandemic, the rates have slowly moved upwards, but remain on the higher side of 3% and for this reason has encouraged buyers to lock in a low rate before it’s too late. With higher demand, there have been constraints on the number of existing homes availability, helping the demand for new construction homes.
New Construction Affordability
As existing homes have become scarcer, the prices for new construction homes have become more affordable in comparison. According to the U.S. Census, the national median price of a newly constructed home sold in March of 2021 was $330,800, whereas the national median price of an existing home sold during the same time was $329,100, according to the National Association of Realtors. That is a small difference to pay for a new construction home.
New Home Layouts
In addition to becoming more affordable, relatively speaking, new homes are also in demand as the builders have been focusing on offering homes that fit the needs of the new “normal”. Whether that has been by creating more plans that provide a designated office area option, more smart home technology or homes that prioritize health and wellness with floor plans to help better prepare for the demands of today.
Resale Inventory
Low resale inventory continues to put pressure on pricing, forcing homes out of the price range for many new homebuyers. To boot, homebuyers are offering over asking price, paying cash, and opting out of inspections and appraisals. Because of this, some homebuyers have chosen to take matters into their own hands and build a new construction home leaving buyers to build their dream home without being outbid, within their timeframe and budget.
If you’re in the market to build a new home, or to learn more about it, give us a call. We have many great options of home models, that can be customized to meet your needs! We are conveniently located in Leesport, PA and assist many home builders throughout Berks County, Lebanon County, and the surrounding counties.