Tag Archives | #buildnew

    Sellers: How Does Your Home Stack Up To New Construction?

    Sellers: How Does Your Home Stack Up To New Construction?

    When homebuyers begin their research, they want to see all their available options! In many cases, they will include both new construction and existing homes in their search; but is a new construction home really the house of their dreams?

    According to a recent survey by Zillow, of the 38% of total buyers that added new construction to their list, only 11% ultimately purchased a newly constructed home!

    71% of these buyers are repeat buyers who are financially secure, with 45% using the money from the sale of their previous homes to make a purchase.

    Below are some reasons why buyers are interested in purchasing a new build:

    • Everything in the house is new/never used (49%)
    • To be close to family (41%)
    • The home is the best value for their money (37%)
    • Appealing home features (34%)
    • Desirable location (34%)

    So, then why did most of the buyers surveyed choose not to purchase a new home?

    1) Location

    Buyers could not find new construction in the desired neighborhood, and some felt that new construction is not established (e.g., landscaping, community, neighbors).

    2) Timing

    Buyers face the end of a lease or sale of their previous property and could not wait for a house to be built.

    3) Price

    Some buyers felt that new construction base prices were deceiving. Adding upgrades and HOA fees no longer made the home fit in their price range.

    4) Appeal

    For some buyers, new construction homes are too “cookie cutter,” and models are limited. Others feel that the charm and uniqueness of an existing house trumps one that’s never been lived in.

    Bottom Line

    Both new construction and existing homes have appeal. As a seller what is your main competition?  Let’s get together to come up with a plan to understand the market around your home, identify the competition and highlight the most appealing and charming details of your house to future buyers.

    Source: Michigan Real Estate Updates

     

    New Home Sales Up 12.7% From Last Year

     

    New Home Sales Up 12.7% From Last Year

    New Home Sales Up 12.7% From Last Year | Simplifying The Market

    According to the latest New Residential Sales Report from the Census Bureau, new construction sales in August were up 3.5% from July and 12.7% from last year! This marks the second consecutive month with double-digit year-over-year growth (12.8% in July).

    The report also showed that builders have ramped up construction with an increase in new construction starts and completions. The summer months are often a busy time for builders as they capitalize on the warmer weather to be able to finish projects.

    Below is a table showing the change in starts, completions, and sales from last August.

    New Home Sales Up 12.7% From Last Year | Simplifying The Market

    Other notable news from the report is that the percentage of new construction sales in the $200-$299k range has continued to break away from the $300-$399k range.

    This shows that builders are starting to build lower-priced homes that will help alleviate some of the inventory challenges in the starter and trade-up home categories. The chart below shows the full breakdown.

    New Home Sales Up 12.7% From Last Year | Simplifying The Market

    What does this mean for buyers and sellers?

    If you are thinking of buying or selling in today’s market, you no doubt have heard that there is a shortage of existing homes for sale which has been driving home prices up across the country. The additional new construction coming to the market could help alleviate this shortage, but we are still not back up to pre-crisis levels.

    Thinking of building new? Contact us and we can review some of the time tested methods to have your on the track for success!

    MESSAGE JOHN

    Source: Michigan Real Estate Updates