New Construction and Master Planned Communities offering New Homes for Sale.
If you are looking to purchase a new home in a master planned community or building your own custom home, we are the ideal resource to navigate the purchase process.
Our team at New Homes will assist in understanding the market, what to look for in a developer and builder and how to find the perfect mortgage and financing for your purchase.
Why New Home Master Plan Communities Are Better
A master planned community commonly offer community areas and preserves the community character with standards.
Additional benefits include:
1) Community amenities
2) Likely to have a warranty
3) Ability to customize
4) Less things break
5) Home hasn’t been lived in
6) Quality standards are higher
Embedd Google Trends ‘New Homes’ search index
New Home Construction
You can clearly see a new found interest for the search term “real estate” in Google’s search engine. It reflects a real time year over year double digit increase in buyer interest at the earliest stage of the buying process. Builders are enjoying the new market conditions that are allowing long-time home owners the opportunity to upsize into a new home that suits their needs with more modern features and new home warranties eliminating maintenance concerns. Communities that were left with empty lots and half built products are moving forward again and the landscape for new home builders is moving forward.
New homes construction estimates jumped 33.8 percent over 2012 levels, the U.S. Commerce Department announced in early 2013 and have remained steady throughout the year. Home builders broke ground on 917,000 homes in February, a 27.7 percent increase above the previous year’s 718,000 starts. A total 711,000 new homes were completed in February 2013, 24.3 percent more than were completed a year prior.
Given the experiences over the last 5 years, homeowners and developers have reason to be skeptical, but there is no reason to believe this will slow down. In fact, homeowners were issued 946,000 new permits in February, a 4.6 percent higher rate than they were issued in the month before.
With new construction taking a front seat in the real estate market, builders are closely watching trends to ensure they are capitalizing on market demand with the perfect floor plans and community offerings for their customers. One of the trends with new home sales is the increase in size.
New Homes in this Real Estate Market
With the market downturn in 2009, the real estate market has seen peaks and valleys over the last 5 years. Prices and sales are fluctuating as we establish a new ‘normal’. We have seen increases in new homes sales with a decrease in price due to foreclosures and short sales, but on the bright side, new construction is balancing the market with strong sales numbers and solid pricing strategies.
Based on an article released by The REAL Trends Housing Market Report in October 2013 implies that the rate of housing sales increased strongly in September 2013 growing 20.9 percent from September 2012.
With market conditions stabilizing and the real estate industry slowly recovering, experts are finally able to make assumptions and forecasts that customers can count on.
Trends in New Home Sizes
The standard size of a new home now surpasses the high levels hit during the housing boom. This is the hottest indication that the new-home marketplace is catering to older, more affluent buyers and less to more youthful and first-time buyers.
During the housing downturns, many home builders built smaller and less expensive homes in response to an era of frugality. People had less money and decreased access to lending. The good news for builders and developers is that has changed for upscale clients who are purchasing their second or third home.
Data released by the Census Bureau this month confirmed the popularity and demonstrated that the standard size of a new home was a record 2,642 square feet. The record of 2,561 square feet was set in the first quarter of 2009. The first-time buyer now has to come up with 20% down payment and a pristine credit score, and that’s harder to do,” said Stephen Melman, director of economic services for the National Association of Home Builders.
First-time buyers, meanwhile, happen to be affected by lending standards and rising interest rates. The National Association of Realtors reports that first-time buyers have made up 29% of home transactions so far this year, whereas they typically have represented roughly 40% ever since the 1980s.
Some builders say they are intentionally building bigger homes to warrant the higher prices they must charge to recover the increasing cost of land. Prices for finished lots increased 24% in the second quarter from a year earlier, according to housing-research firm Zelman & Associates. “If you pay top dollar for land, you need to build a bigger home on it to make money,” said John Burns, chief executive of a home-building consulting firm in Irvine, California.
While new homes are getting bigger in most markets, they expanded the most since 2010 in Lancaster, South Carolina, Jacksonville, North Carolina, and Naples, Florida, according to data compiled by Metrostudy, a housing-research firm.
The average size of new homes in Lancaster, a fast-growing suburb of Charlotte, North Carolina was 3,321 square feet in the second quarter, up 39% since 2010. In northern Lancaster County, home builder Lennar Corp. is developing a 400-lot community of houses ranging in size from 1,686 to 3,250 square feet. The builder also will start to sell homes of up to 4,410 square feet next year in a second community in the county.
Case-Shiller 20-City Home Price Index
New Home Prices Rise
Prices for new homes are also reaching new highs. The average price of a new home hit a record $337,000 in April 2013. It has fluctuated slightly throughout the summer, however the increase has remained consistent. The average price of homes sold increased by 5.5 percent in September 2013 as compared to September 2012.
Some industry observers see a pullback on the horizon that could be a consequence of shifts in what buyers can pay for, rather than what they prefer. The rate for a 30-year, fixed-rate mortgage climbed to 4.58% as of Thursday from 3.59% three months earlier. That means higher mortgage payments for buyers. Already, rising rates sapped new-home sales in July, which the Census Bureau reported Friday had declined to a seasonally adjusted 394,000, a larger-than-expected slide of 13.4% from the June figure.
The average price of homes sold in September 2013 increased 5.5 percent across the country, down measurably from the results in August 2013. The West had the best results with the average price of homes sold increasing 10.2 percent followed by the South region at 7.3 percent and the Midwest at 7.0 percent. The Northeast region saw prices move downward by 0.3 percent.
Tips for Buying Your First Home
- Become an expert in the area. It is important to research and understand the selling prices of comparable homes in your area. Local MLS listings or online home listing search engines can give you a general idea of what you should expect to pay for a home in your area.
- Know what you can afford. The ideal price doesn’t always mean you can afford the home. Use an online mortgage calculator to see what your payment would be for the price you like. It is important to understand what the actual monthly payments will be for your dream home.
- But can you REALLY afford it? Now that you know your ideal monthly mortgage payment, you need to next check all the other homeowner costs. Don’t forget to budget for taxes and homeowners insurance. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.
- Are you sure that’s EVERYTHING? First time homeowners don’t always know what is involved in paying for your first home. Not only are the extra monthly fees that owning a home costs, there are the additional up-front fees that are included when you purchase the home. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees.
- Stick to your budget. Know your budget and follow it. You might fall in love with your dream home, but going over budget might feel like small amount at the time, once the emotions wear off, you are left trying to make ends meet. Always look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Is your dream home going to push you past that? Think twice.
- Talk to reputable brokers and agents in the area you are looking to buy. Only the realtors who work in the area will know the inside scoop. What new homes are they seeing? What do they know about your neighbors? The area? Ask around, you don’t want to wish you did later.
- Remember to look at the big picture. While purchasing a house is a sensible way to build wealth, looking after your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your savings.