Why Buyers Are Turning to New Construction Homes

With more homes on the market, you’d think finding the right one would be easier. But for many buyers, it’s not. That’s why new construction is becoming a top choice—and often comes with the best deals.

Why Builders Are Motivated to Sell

Today, many builders are sitting on more finished homes than usual. Since they run a business, they can’t afford to hold that inventory for long. Instead, they want to move those homes before starting new projects. That motivation works in your favor.

Lance Lambert, Co-Founder of ResiClub, explains:

“In housing markets where unsold completed inventory has built up, many homebuilders have pulled back on their spec builds—and many are doing bigger incentives or outright price cuts to move unsold inventory.”

Incentives Are at a 5-Year High

According to the National Association of Home Builders (NAHB), 66% of builders offered sales incentives in August—the highest percentage in 5 years.

That means 2 out of every 3 builders are offering something extra to close deals.

Price Cuts Are Back on the Table

One of the most common incentives is a price reduction. Data from NAHB shows nearly 40% of builders are cutting prices, averaging around 5%.

For example, a $500,000 home could see a $25,000 discount with a 5% cut. And even if the builder isn’t lowering prices, many are offering alternatives like:

• Mortgage rate buydowns

• Closing cost assistance

• Free upgrades

As Realtor.com puts it:

“. . . there are deals to be found in the market for new homes, with builders increasingly willing to negotiate on price or offer incentives such as rate buydowns and closing cost assistance.”

Why New Homes Appeal to Buyers

New builds often offer:

• Larger kitchens and open floor plans

• Energy-efficient features (lower utility bills)

• Smart-home technology

• Minimal repairs from day one

Combine these with today’s incentives, and it’s one of the best times in years to buy new construction.

Don’t Go It Alone

If you want to explore new builds, make sure you have your own agent. Builder reps represent the builder’s interests, not yours. An experienced agent will:

• Help you evaluate incentives and pricing

• Negotiate on your behalf

• Protect your best interests throughout the process

Bottom Line

If you’re not finding a resale home that fits your needs, the new construction market is full of opportunities. With builders motivated to sell, incentives at record highs, and price cuts in play, now may be the perfect time to buy new.

Curious how today’s incentives could stretch your budget? Let’s connect and explore what builders are offering in our area.