New home pricing is inching closer to existing home prices, and here is why. The difference between new and existing home prices hit a record third-quarter low. Builders are offering below-market financing and upgrade incentives to lure buyers. The inventory of new homes is higher than in past years when mortgage rates were much lower. Builders are willing to offer incentives to close more deals, especially as the year comes to a close, and new home stock is readily available.
Mortgage rates have been on a downward trend this year, but they’re still over 6%, and there’s been buyer resistance. Recent data from the National Association of Realtors shows that new construction financing is almost 1% less expensive than existing home financing.
New construction is priced competitively with existing homes in SW Florida. One additional advantage is the cost of insuring your home; new homes often meet stronger building codes, which are less expensive to insure. Home insurance factors into the monthly housing cost, and new construction has the advantage.
If you are currently looking to sell an existing home, please get in touch with me at 941-799-9440 to request a Comparative Market Analysis of your property. If you are looking to purchase a house, we can compare existing and new construction to find the best option for you.
