Friday, April 26, 2024
Pam Knieper
In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported: “60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.” However, it seems buyers are now shifting their preferences back to existing homes.
The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.
NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Why the shift? There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:
• The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
• There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.
Additionally, existing homes typically offer money saving features that have real monetary value for home buyers. While swimming pools, workshops and boat docks add value to an existing home, the full “sticker price” for that item’s installation is not simply added on top. Typically, only 30 - 40% of the actual cost of a swimming pool, workshop or boat dock can be added to the asking price on an existing home. Buying a new home, you will be out of pocket 100% for those upgrades.
On a smaller but still noteworthy scale. Improvements like window coverings & landscaping in an existing home can save buyers hundreds, sometimes thousands of dollars.
None of this is meant to cast a negative light on new construction. New homes are beautiful, extremely popular, and will continue to be the best choice for many buyers, but the bottom line is this. If you’re a homeowner looking to sell, your house is now much more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility of selling. As always, please feel free to contact us at 817-219-0456 or visit us online at www.WeSellGranbury.com.
Portions of this article were sourced (with permission) from www.KeepingCurrentMatter.com
