While inventory issues have hampered many markets in recent years, for agents and brokers offering new construction listings, the next two weeks may be looking up.
As a result, many home buyers have been choosing new homes.
They jumped last month to the highest level since October 2007, “a sign that Americans — unable to find existing homes — are turning to new construction,” said USA Today. “New home sales leapt 18.9 percent in September to a seasonally adjusted annual rate of 667,000, the most in a decade. Sales rose in all regions including the South, where they increased nearly 26 percent.”
When the Housing Market Index was last reported for November, it showed builder confidence rising to an 8-month high. More importantly, the reading at 70 marked the second highest level on record since July 2005.
Forward looking housing starts data showed the rate of new construction soared 13.7% in October, to an annual rate of 1.29 million units
With the existing home inventory expected to remain tight through the first half of 2018, clients who are considering a new home may find the next two weeks could be the best time to buy all year.
As it turns out, builders are motivated to sell their homes this time of year so they can get them off the books.
For your buying clients, find out about “featured” plans or homes, which may mean the builder is willing to work with buyers to get these particular homes sold.
Ron Sozio, builder client relationship manager at Wells Fargo in Somerville, N.J., told New Home Source that builders also offer thousands of dollars in incentives to buyers who choose to get their loan through the builder’s preferred lender. Those incentives mean “it actually may be less expensive to buy a new home than a resale,”
According to the report, incentives can include closing costs and/or a buy-down of your client’s interest rate, and can be as much as two or three percent of either the sales price or the loan amount.
