As would-be sellers hold off on listing their properties during a market correction, one-third of all housing inventory currently on the market is new construction, but misconceptions surrounding new-home purchases are preventing many buyers from taking advantage of that booming supply.
Though new homes cost more upfront and take an average of 6.5 months to complete, spec homes offer a faster alternative for buyers looking to move in quickly, and a newly completed home requires less maintenance than an existing home, saving homeowners money down the line, Realtor.com reports.
While new-construction homes might technically cost more upfront, that price tag is not the whole picture.
“It’s true, on the average, that new homes of similar sizes historically outprice pre-owned by about 16%,” says Stephen Haines, president of Artisan Built Communities. “But since homes don’t possess a clear odometer on them, like one would use to evaluate a used car, buyers need to consider all the costs of purchasing to understand their total cost of ownership.”
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