Thinking about finding a better home price or a lower mortgage rate? You might get lucky and find both with a newly built home. A lot of buyers are passing on new construction right now, but it could actually be your best chance in today’s market. Here’s the reason why.

Right now, there are more brand-new homes on the market than there have been in recent months. The latest data from the Census and the National Association of Realtors (NAR) shows that about 1 in 5 homes for sale is newly built. So if you’re not considering new construction, you could be overlooking a significant part of the market.

With more new homes hitting the market, builders are eager to move their existing inventory. Because of that, many are offering incentives and trying different strategies to attract buyers.

Builders Are Cutting Prices

Buddy Hughes, the Chairman of the National Association of Home Builders, says:

““Almost 40% of home builders reduced sales prices in the last month . . .”
”

— Buddy Hughes, Chairman of the National Association of Home Builders (NAHB)

Builders are staying grounded about the current market and tweaking their prices to match what buyers can afford. It’s how they keep their homes selling.

You might be surprised, but builders are often open to negotiating the price. This could mean you get more value for your money when buying a newly built home. Work closely with your agent to find out what options are available and what special incentives builders are currently offering in your area.

Builders Are Offering Lower Mortgage Rates

Here’s a little-known fact: if you’re buying a brand-new home right now, you can often secure better mortgage rates than if you’re buying an existing one.

A lot of builders are offering rate buydowns to make their homes more appealing and keep sales going. In other words, they’re helping lower your interest rate to make it easier for you to buy one of their homes.

According to data from Realtor.com, buyers who purchased newly built homes in 2023 and 2024 enjoyed mortgage rates that were about half a percent lower than those who bought existing homes (see graph below).

Saving that much really adds up and can make a noticeable difference when you’re planning your monthly budget.

If you haven’t come across a home you love yet, try including newly built homes in your search. You might discover that what you’ve been looking for is already available—it’s just in a new home community.

Bottom Line

Having more options means you can negotiate the price and possibly get better mortgage rates, making these choices a real advantage in today’s housing market.

Have you thought about a newly built home yet? What’s been stopping you?

How about we chat about it and see if checking out new builds nearby is a good idea?