In the current real estate landscape, purchasing a home in St. Louis or St. Charles County comes with its share of challenges. Higher mortgage rates may create affordability issues and there is a limited inventory of available homes compared to years past. However, what if there was a game-changing solution that could address both concerns?
Inventory Bright Spot: New Home Construction
Home seekers can opt for either existing homes or newly constructed properties. While the inventory of existing homes for sale has seen some growth this year, there are still fewer options compared to previous years like in 2018 or 2019.
Embracing newly built homes can
expand your choices further. According to Danielle Hale, Chief Economist
at Realtor.com explains,
“The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it.”
At The Boehmer Team we know what recent data from the Census shows - new home construction is ramping up in two
key areas: starts and completions. (See most recent spike on chart below in pink.)
Starts, or homes where builders
just broke ground, have seen a big increase lately. And completions, homes that
builders just finished, are also up significantly. So, if you want a new,
move-in ready home or you want to get in early and customize your build along
the way, you have more options right now.
See
Our List of Preferred Builders
Affordability Incentives from Builders
Builders are currently providing incentives such as mortgage rate buy-downs to ease affordability challenges and help buyers achieve their dream home. Mark Fleming, Chief Economist at First American, explains why you may find builders have more wiggle room to offer than the typical homeowner:
“Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”
Expert Guidance from New Construction REALTORs
Purchasing a newly built home
involves a different process than buying from a homeowner. It is essential to
work closely with local REALTORs like The Boehmer Team. We have many years of
experience working with home builders as well as special training and
certifications to help the new construction home buyer. We offer expert
guidance through intricate builder contracts, the build process and more.
In Summary
If you're facing difficulties in finding a suitable home or navigating affordability issues, considering exploring the potential of newly built homes as a viable solution. Connect with The Boehmer Team to explore if this option aligns with your home-buying needs. Or visit New Home Central on our website to search for new construction homes, see preferred builders, learn about the process and more.
