Newly Built KC Homes Could Be a Game Changer This Spring

Many homebuyers looking to purchase in the Kansas City area this spring are navigating affordability challenges and a limited supply of homes for sale. Are you among these hopeful KC buyers? What if we told you there was a solution to help overcome both of these difficulties?

If you're having trouble finding a Kansas City home you love and current mortgage rates are straining your budget, consider newly built homes.

New Home Construction: An Inventory Bright Spot

In the current Kansas City housing market, interested homebuyers have two choices: existing homes and newly constructed ones. The supply of existing homes for sale (those that are already built and previously owned) has increased this year, but the number remains lower than in more typical years in the housing market, like 2018 or 2019.

If you want to expand your buying options even more, turning to newly built homes can help. As Danielle Hale, Chief Economist at Realtor.com, explains:

"The shortage of existing homes For Sale has opened up the possibility of new-home construction to more buyers who may not have once considered it."

The great news is there are more newly built homes to pick from in the current KC housing market. The graphs below use data from the Census to show how new home construction is ramping up in two main areas (see most recent spike in green):

Newly built homes have two phases: starts (homes where builders just broke ground) and completions (homes that builders just finished). The number of both types of construction homes has significantly increased in recent months. For Kansas City homebuyers looking for a new, move-in-ready home or wanting to get in early and customize their build along the way, many alternatives are available in the current housing market.

Incentives To Help with Affordability

Many KC builders offer mortgage rate buy-downs and other perks for homebuyers to sweeten the pot. These incentives can offset today's affordability challenges and get you into your dream home. Why do home builders have more wiggle room to offer than the average homeowner? Mark Fleming, Chief Economist at First American, explains:

"Builders aren't rate locked-in. They would love to sell you the home because they're not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season."

An article from HousingWire also says this about what builders are offering right now:

 ". . . the use of sales incentives still shows some momentum as 60% of respondents reported using them, up from 58% in February. "

Purchasing a home from a builder differs from buying from a home seller. The local real estate agents at Just Say Home KC can assist you in navigating complex builder contracts and advocate for you throughout the homebuying process.

These Kansas City buyer's agents will be your go-to resource for advice on construction quality and builder reputation. They will review and negotiate contracts to get you the best deal, help you decide which customizations and upgrades are most worthwhile, and ensure your homebuying experience is smooth from start to close.

Bottom Line

Are you a buyer struggling to find a home in the Kansas City area with today's affordability challenges? The Just Say Home KC real estate experts can help you determine if newly built homes are your solution.

Post a Comment