In 2013, the Carolinas were one of the top regions in the country for the most single-family home starts, according to U.S. Census Bureau building permit data. In 2014, we’re continuing to see strong activity with new construction.
Are we in the midst of another building boom? Perhaps, but I see this trend more as creating more opportunities for buyers who are ready to sell now. In the July-August edition of Allen Tate’s Carolinas Market Update, I explain that when new construction is available, this puts more existing homes on the market – and in turn, helps boost housing inventory.
New home starts have been slow in recent years, as builders left the market or significantly slowed their projects. Homebuyers who prefer new construction have been waiting patiently – and now they are ready to make their move as strong job creation in the Carolinas has strengthened the economy.
When newly built homes are available, 41 percent of the market prefers new construction. About half of that – 21 percent – prefer an existing home, and 38 percent have no preference, according to an April 2014 Harris Poll.
While new homes run about 20 percent higher than existing homes in the same Zip Code, buyers are willing to spend a bit more to get modern features; choices of models and décor; and a home initially free of maintenance and repair issues.
Most people who buy new simply want a brand-new home – free of dirt and wear-and-tear from previous owners.
When people ask my advice about buying new construction, many of them are surprised to learn that they still need a Realtor®, and it doesn’t cost them more than going “direct” to a builder. A Realtor offers sound advice and experience to help you find the right property, navigate the process and represent you on your way to becoming a happy new home owner.
Ready to check out new homes in your area? Call your Allen Tate Realtor today – and let’s go!