Are New Construction Homes More Expensive?
Are New Construction Homes More Expensive? How Much a New Construction Home Really Costs.
People often tell us that they haven’t considered buying a new home because it’s more expensive. But that’s not always the case!
Here are the most recent stats from the Charlotte market:
At the end of March 2020 there were 9000 homes on the market.
At the end of March 2021 there are now 3000 homes on the market.
That’s a 66% decrease in available inventory. Simple economics principles of supply and demand predict that prices must increase. And that’s exactly what happened. I’m sure you’ve heard of your friends going through bidding wars, seen neighbors selling their houses in less than a day, or have been dealing with this crazy market yourself. In today’s market, the price difference between used homes and new homes is as close as it’s ever been.
Let’s look at some more numbers:
The average price for an existing home is $340,000.
The average price for a new home is $383,000.
Now granted that is a $43,000 price difference, but new homes don’t need repairs, new homes don’t take as much maintenance, new homes don’t need renovations.
Think about some of the things that used homes require. What if you wanted to take that used home and put in a brand new kitchen or bath or both, and you want quality that would match what comes in a new home. How much do you think that would cost? How much would a new roof or new HVAC system cost? It doesn’t take long to get that used house to cost as much as a new home. And the sad thing is, it’s still a used house.
It’s completely possible to build a new construction home and still stay within your budget. And building gives you the opportunity to decide on the lot, find the perfect floorplan, and style the interior in the way that you want. You don’t have to worry about dealing with outdated fixtures or repairing things in just a few month’s time.
Be smart, buy new. Let us help you find the perfect new construction home for you. Contact us and let’s get started!