Due to the housing shortage currently being experienced in the United States, the availability of new homes for sale has drastically reduced. As a result, many people are finding it challenging to find suitable new homes for sale.
However, the housing shortage has led to the development of numerous trends in the housing market. Thus, if you are currently looking for new homes for sale, it is advisable to get acquainted with the latest trends affecting the housing market.
With that in mind, here are three of the most common trends affecting new homes for sale.
Raising Housing Prices
The housing market is not immune to the laws of supply and demand. The current housing shortage means homes are in high demand, but the supply is limited.
The housing construction industry has experienced delays in developing new homes because of the COVID-19 pandemic. During the pandemic, various lockdowns were implemented and, as a result, construction companies were forced to halt their construction projects, which further contributed to the housing shortage.
According to the laws of supply and demand, if demand is high, but the supply is low, the price of the commodity is bound to rise. Thus, as of 2021, the average cost for new homes for sale has risen from $339,400 to $408,800. Therefore, since the housing shortage is nowhere near complete, you can expect the average cost of new homes for sale to continue rising.
As more and more people strive to own homes amidst the housing shortage, real-estate brokers make a higher profit by instigating bidding wars. A bidding war is a competition between buyers for a particular home by placing competitive bids on the house.
Suppose a new home for sale gets listed for $300,000, and you place a bid for the exact amount. However, another potential buyer bids for the same house at $310,000. Then a third potential buyer places a bid for the same house at $320,000. In such a scenario, the house goes to the highest bidder. Thus, if you want to buy the home, you have to bid higher than the last bidder every time until no more bids are placed higher than your price.
Thus, if you are in the market for a new house, it is advisable to be prepared to participate in a bidding war against multiple potential buyers.
Traditionally, potential homeowners would wait for new houses to be listed before they buy them. However, due to the housing shortage, wise buyers are jumping the line and buying homes off-plan.
Buying off-plan means buying a home before it is constructed or before the construction is completed. For instance, if you see an ad for proposed residential housing development, you can buy a housing unit on the proposed development before it gets constructed instead of waiting for the development to get completed. Thus, you get to own a home before it is even built.
Buying off-plan enables a person to acquire a new home at a subsidized price compared to listed properties. A listed new home for sale often includes various expenses that drive up the price, such as real estate agent commissions and a profit for the developer. However, when you buy off-plan, you get to eliminate some of the additional costs that listed new homes for sale have.