In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:
“60% of people who were looking to buy a home in 2020 said they’d prefer new construction to an existing home.”
However, buyers are shifting their preferences back to existing homes.
The latest Consumer Confidence Survey reveals that the percentage of Americans planning to buy a home in the next six months is virtually the same as in March. However, the percentage that plans to buy a newly constructed home is lower for that same period.
NAHB confirms this sentiment in its latest Housing Trends Report. The organization explains that existing homes are now popular among today’s buyers. Here’s a breakdown of those findings:
Why the shift?
There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:
- The process may move faster. Builders may be unable 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, but it also likely has a refrigerator, range, and other necessary home appliances already.
- There are no unexpected costs during the buying process. Because the prices of land, labor, and lumber are so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, your final price is negotiated upfront.
Bottom Line.
If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers than it was earlier in the year. This might be the time to connect with KM Realty Group LLC’s professionals in Chicago to discuss the possibility.
