Buy a new house and buy it now before it starts getting out of your reach once again. And no, we are not kidding when we say because new constructions have hit a media one year low just now, and things are looking set for serious buyers.
1. Fall in Price
There has been a considerable fall in the price of new houses, with the lowest range existing under $150,000, which accounts for 5% of these new low-priced homes. This is quite an excellent figure because the last time things saw the light of day in such a matter was back in 2016.
Since March, the recorded decrease in price has been 7% on an average. The decrease was not entirely uncalled for, because it is an avid representation of the decrease in demand for new houses in the market.
2. New vs. Old
The new and old house debate is old but still very new. Homes which are recently constructed are, despite the recent fall in prices, still priced at an impressive 24.8% above the media new construction price, which stands at around $250,400. To people who are on a budget, such a price difference is quite considerable because, with the furnishing, decoration, and setup of the new house, the expenses are set to rise above the initial cost of purchasing the property.
What makes this occasion different from such a black and white painted picture is the fact that new houses on the lower end of the scheme can actually cost you lesser than old constructions which are worn and torn badly. The purchasing power parity of the people has not been welcoming enough for them to shift from house to house with drastic financial implications, which is why most old constructions need to be renovated heavily before they are ready for use.
The new prices can, therefore, give an edge to the new constructions.
3. Demand for new homes
The deputy chief economist of Freddie Mac has stated that the demand and sales of new homes have dropped 1.5% over the year and that these figures are what have inspired parties to lower the prices of new properties. This also points to the possibility that the future may see even lower prices for the homes, but that might be a faulty assertion.
Right Now is The Time to Act Because
The lower pressure of demand in the market can lead to a re-established equilibrium which may as well be equal to the old, higher prices.
Every year the entry of millennials in the job market is on the rise, and their ambition can guide them to take up the homes.
Is the Fall Here to Stay?
At the end of the discussion, this is still quite a difficult question to answer, because the economic position of the country has not fluctuated to the extent that everyone can afford new constructions. That being said, if some mortgages, loans, and extra effort can get you a new place, then waiting for a better time may not be the wiser option.