New builds are taking up a growing share of the pie as builders attract buyers with concessions, and surging mortgage rates prevent existing homeowners from selling.
Nationwide, 30.6% of U.S. single-family homes for sale in the third quarter were new construction—the highest share of any third quarter on record. That’s up from 28.9% one year earlier and 25% two years earlier.
Newly built homes have taken up a growing share of for-sale housing inventory partly because homebuilding has increased and partly because the number of existing homeowners putting their houses up for sale has decreased as mortgage rates have surged to a 23-year high of roughly 8%.
High mortgage rates have pushed a lot of buyers to the sidelines, but many of the buyers who are in the market are opting for new construction homes because builders are handing out concessions like mortgage rate buydowns in order to attract bidders and offload inventory. Purchases of new single-family homes jumped 12.3% last month—the fastest pace since early 2022. It’s worth noting that the latest run up in mortgage rates could slow new-home construction.
If you are looking to purchase a new construction homes in Harford County, Maryland, and surrounds or in Pennsylvania we will be happy to help guide you through the process. Contact us today!