Think a brand-new home has to come with a big price tag? Not necessarily.

Currently, there’s an interesting trend in the housing market. Data from the Census and the National Association of Realtors (NAR) shows that the median price for newly built homes is now lower than that of existing homes, which are those that have already been lived in.

You heard me right. That brand new house that no one has lived in yet might actually be cheaper than one that was built 20 years ago just around the corner. If you thought new builds were out of your budget, here's something important for you to know: you could be overlooking some great opportunities in the current housing market.

Why Are Newly Built Homes Less Expensive Right Now?

1. Builders Are Starting to Go Smaller with New Homes

Builders are aware that many buyers are facing challenges with affordability these days. As a result, they’re shifting their focus from constructing large homes that might sit on the market to building smaller, more affordable ones that are more likely to sell. The Census data shows that the average size of newly built single-family homes has significantly decreased over the last few years.

As the size of a home decreases, you’ll typically see the price drop as well. Smaller homes require fewer materials to build, which helps keep construction costs down. This makes it possible for builders to offer lower prices, making homes more affordable for a wider range of buyers.

2. Builders Are Sweetening the Deal with Discounts and Perks

In May, the National Association of Home Builders (NAHB) reported that 34% of builders reduced their prices, averaging a drop of 5%. They’re doing this to ensure they can sell their current inventory before starting new construction.

In addition, 61% of builders have been providing sales incentives, such as assisting with closing costs or reducing your mortgage rate. These strategies are helping make their homes more affordable, which is crucial for selling in the current market.

Your Next Step? Ask Your Agent What's Available Near You

If you’re in the market for a home right now, make sure to check in with your agent. They can give you the scoop on what builders are up to in your area. Your agent might uncover new home communities, builders with incentives or discounts, and even some hidden gems you wouldn’t find on your own.

When you're buying a newly built home, the process can be a bit different compared to purchasing an existing property. That's why having your own agent is crucial. They can help break down the details and navigate the fine print, ensuring you have someone who’s looking out for your best interests. You want a professional in your corner to negotiate and advocate for you throughout the entire journey.

Bottom Line

You can find a brand-new home with all the modern features, often at a price lower than some older properties. Let's discuss what you're looking for and see if a newly built home could be the perfect choice for you.

If buying a home is on your agenda, what's holding you back from checking out newly built options?