1/3 of Single-Family Homes For Sale are Newly Built.

by LaDonna Azagra

Here's what Buyers Need to Know:

In today's evolving real estate market, approximately one-third of homes for sale are newly constructed, marking a significant trend worth noting. Robert Dietz, chief economist of the National Association of Home Builders, provides clarity by explaining that this uptick in new homes on the market doesn't signal a rapid increase in construction activity but rather reflects a shrinking inventory of existing homes available for resale. Factors like labor shortages and rising material costs have constrained the pace of new home construction, maintaining an annual rate of about 1 million single-family homes.

Concurrently, changing buyer preferences for modern amenities and customization options contribute to the appeal of newly built homes. With reduced inventory of existing homes, competition among buyers intensifies, necessitating preparedness and swift action in today’s competitive market. Staying informed about these dynamics enables buyers to navigate the complexities of the current housing landscape effectively, ensuring informed decisions aligned with their needs and financial considerations.

Courtesy of CNBC