Are you excited to start looking for a home at the beginning of 2020? With new residential construction stats on the upswing, there may be more new homes being built in your area, increasing your chances of finding a home to buy. Get out there early to beat the competition.
Baby boomers continue to live in their homes vs. downsizing which has contributed to the housing supply shortage. With increases in new construction, home buyers can look forward to more opportunities to purchase homes in 2020. According to the U.S. Census Bureau, privately owned housing starts have risen 3.2% over the last month (Nov.) and 13.6% year-over-year. These significant increases work in favor of home buyers, along with low mortgage rates, similar to what we saw in 2019.
Make sure you have a real estate agent who understands the ins and outs of a builder's contract. An agent who specializes in new construction, possibly a certified New Home Specialist, can help you understand inclusions, financing options, incentives, floor plans, upgrade options and more.
Financing can be a bit tricky with new construction. Even if you get a great mortgage rate, it's only locked in for 90 day -- if some part of the build is delayed, you might end up paying a higher rate. Your real estate agent is an asset when it comes to helping you determine the best timeline for making an offer so you can secure a low mortgage rate. Consider finding a real estate agent who specializes in selling new construction.
Whether you're looking for your first home or want to sell your existing home and buy another, new construction is on the upswing and in your favor. With low interest rates, now is a good time to talk to a real estate agent about getting into a brand new home. Consider finding an agent who is familiar with local builders and new construction contracts to ensure you have the best new home buying experience possible.