Conflicting Information Amidst the Buzz
So, is the new construction industry going up or down? We’ve seen a lot of conflicting information. There are news stories that say new homes are on fire, while a lot of people say maybe it’s going to crash. Let’s delve into the details.
Shift Towards Newly Built Homes
This article from the New York Times sheds light on the trend. A lot of buyers are looking for new homes because there aren’t a lot of homes to look at in terms of resales. Even with the rates coming down a little bit, not a lot of people want to sell them because they can’t find something to buy either. What’s the alternative? Looking for newly built homes instead of existing ones.
The Cost Factor: New vs. Resale
You might think that newly built homes are more expensive, and sometimes they are. But here’s the thing: you don’t have to do any work on them from day one. Even if you buy a nice resale that’s five or six years old, you’re going to have to start looking at paint, roofs, gutters, and other maintenance. A new home is turnkey, saving you from immediate expenses.
Quality and longevity
Houses built after the ’80s are considered more disposable. Older homes, especially those from the ’60s, ’70s, and earlier, were solidly built and tend to last longer. The construction quality of newer homes, especially those from the ’90s and 2000s, may not be as durable. Thus, investing in a 50-year-old house might be a better bet than a 20-year-old one due to superior craftsmanship.
Rising Construction Amidst Challenges
The housing market has been mired for the last year due to high prices, soaring mortgage rates, and a lack of inventory. However, existing homes account for 90% of sales, with homeowners reluctant to sell due to low rates and the scarcity of alternative housing options. This has led to a rise in construction as developers build more homes, potentially signaling the wave of the future.
Assessing the New Homes
New homes could go either way in terms of quality. Buyers need to thoroughly check with their builder, ensuring not only a good inspection but also reviews of the construction process. It’s essential to be vigilant and informed before making such a significant investment.
Local Perspectives: Share Your Insights
This particular story highlights the construction boom in Las Vegas. However, similar trends are observed in other regions, such as South Florida, where builders are acquiring land to build hundreds of new homes. What’s the situation like in your neighborhood? Share your observations in the comments.