As reported by CNN, the sale of new construction homes increased 20 percent from May 2022 to May 2023, according to a joint report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Here are some of the reasons why buying a new construction home is such an attractive option for homeowners today.
Resale homes are in limited supply
A shortage of available housing has long been an issue after the 2008 financial crisis led to “years of underbuilding,” as reported in the Wall Street Journal. Then, the pandemic made matters worse, as a desire among more people to have a space of their own coupled with ultralow mortgage rates to take a huge supply of homes off of the market.
CNN real estate experts note that homeowners with ultralow interest rates on their mortgage are now reluctant to sell their existing house and buy a new house at a higher rate. As a result, the sale of existing homes has been lower than average for the past several months. According to the National Association of Realtors, there were just over one million existing homes on the market throughout the U.S in May 2023.
New home sales surged in May, as buyers looked to new construction as an alternative to the low inventory of existing homes for sale.-Anna Bahney and Alicia Wallace, CNN
To meet the demand for houses, new home sales have increased in every region of the U.S. In March 2023, 33 percent of homes listed for sale were “new homes in various stages of construction,” which is far more than the annual average of 13 percent from 2000 to 2019, according to the National Association of Home Builders, as reported by USA Today.
However, the market is just one reason that homeowners are looking for new construction homes. Buying a new home, rather than a resale home, comes with a number of other advantages.
Replacement homebuilders are bringing new construction to more neighborhoods
Replacement homebuilders like TJH are bringing new construction homes to neighborhoods that historically have not had new home options. Resale homes used to dominate in these established neighborhoods, but the declining inventory has made finding resale homes in such areas more and more difficult.
We only build new homes in neighborhoods where the quality of life is high but the inventory of homes is low. As a result, we are meeting demand for new homes in some of the most sought after zip codes in the country.
Our sales team will work closely with you to find the best fit home among our continually-growing inventory of new homes in Southern California, Northern California, the Pacific Northwest, Colorado, and Arizona.
New construction homes save you time and money on renovations and maintenance
In many cases, homeowners will buy a resale home because they love the location, even if the home is outdated, which will often require immediate renovations. Renovations frequently end up costing far more time and money than expected, as reported in CNBC, leaving homeowners frustrated and stressed, waiting to move in and veering into red on their desired budget. Plus, buying an older home can mean that costly maintenance and repairs are just around the corner.
When you buy a new construction home from TJH, you can rest easy knowing that everything, from the foundation to the countertops, is brand new and will stay in excellent condition for years to come. And, if something does go wrong, you have the peace of mind of our industry-leading warranty. We stand behind our people, product, and process, and our devoted customer experience team will always be there to make things right.
Modern layout and amenities to fit your lifestyle
There’s no reason to spend more money after you purchase your home installing the amenities you want.
Our homes are designed for a modern lifestyle. – every TJH home features a functional, open-concept layout to promote ease of living and family connection. We include the amenities most desired by homeowners, such as indoor/outdoor entertaining spaces, chef-inspired gourmet kitchens with ample bar seating and abundant storage, flex space for a rec room or home office, and first-floor guest suites or attached ADUs for overnight company or multigenerational living.
Alternative new home solutions
Homebuyers generally look to the market for their next home, but considering alternative home solutions is a wise idea for many. In addition to our inventory of quick move-in market homes, we also offer the option of buying a pre-construction home or building a new home where you already live.
These alternative solutions offer a number of benefits. TJH’s pre-construction homes allow you to personalize design elements in your new home. Buyers who get in early also enjoy preferential pricing. Plus, our price and delivery guarantees mean you will not have unwelcome surprises, even when you buy a home before it is built.
BUILD is another new construction option that homebuyers might not think of, but that could be the ideal solution if you love your location but need more space, a more functional layout, or a more modern home. If you already have a homesite and aren’t finding what you want in the market, BUILD may be right for you.