People Around the Country Want Homes That Cost Less, and Builders Are Responding

There are two main things that make it hard for buyers to afford homes in today's market: mortgage rates that are higher than they have been in the past couple of years and rising home prices caused by a lack of homes for sale. To deal with these problems, a lot of people are working with their local real estate agents to find homes that cost less. And because there are more newly built houses entering the market right now, this search often includes brand new homes.

Less is Being Spent on Newly Built Homes

The graph below utilizes the most recent Census data to demonstrate that in June, a greater proportion of newly constructed home sales in this country were in lower price ranges than in 2022: Only 58% of newly constructed home sales were under $500,000 last year. In June of this year, the percentage had risen to 65%. This indicates that more people are currently purchasing newly constructed, less expensive residences, while affordability remains a challenge.

Builders Are Offering Less Expensive Options

Builders have noticed this trend and are making changes based on it. Chief Economist at Keeping Current Matters, George Ratiu, says:

“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .”

This trend is confirmed by new data from the Census, which shows that the median sales price of recently built homes has gone down in recent months (see graph below):

Mikaela Arroyo, who runs the New Home Trends Institute at John Burns Real Estate Consulting, says that the builders who are most in tune with this trend are making ways for people to become homeowners. He goes on to say:

“. . . it is creating opportunities for people to be able to afford an entry-level home in an area. . . . if you get that size down, that automatically will make it a more affordable home. The [builders] that are decreasing [size] the most are probably the ones that try to build more of an affordable product.”

How an Appleton Realtor or Appleton Real Estate Agent Can Help

Builders who make new homes that are smaller and less expensive give you more affordable choices at a time when you really need them. If you want to buy a home soon, work with a local real estate agent to find out what's for sale. An agent can help you look at nearby houses that are new or are being built.

Bottom Line

Let's talk if you're having trouble finding a home you like that fits your budget. You need a Fox Cities real estate agent who knows about all the new homes in our covered areas, including ones that are still being built or have just been finished. So in this case, you'll have an Appleton real estate expert on your side who can help you with the home-buying process by telling you about builders' reputations, contracts, negotiations, and the overall home buying process.

Contact Steven “RedBeard” Vertz, The Largest Beard in Real Estate today!

Call or Text (920) 209-1079

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