A new report shows that home buyers’ preferences have shifted to new construction versus new builds, according to the National Association of Home Builders (NAHB).
“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 shows the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. But the percentage that plan to buy a newly constructed home is lower for the 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:
1. 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.
2. 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.
If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time to talk to the experts at VIP Realty. Call us at 614-537-1994.
At VIP Realty, we have helped thousands of people achieve their dream of homeownership. Evan Skinner and Greg Skinner are the undisputed leaders in 43123 sales area. They take pride in the relationships they build while working relentlessly on their clients' behalves selling commercial, industrial and high-quality residential properties.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. VIP Realty does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. VIP Realty will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.