Hello everybody my name is Cheri Malozsak and welcome back to Suburban Snacks. In this episode, we are going to inform you as to whether or not homebuyers are preferring existing homes over new construction. I will also be reacting to our Coconut Love snack!
According to keepingcurrentmatters.com, 35% of all homebuyers now prefer purchasing an existing house. While this is a 4% increase from Q4 in 2020, new construction has seen a negative drop of 9% in the last 6 months. Existing Homes seem to be the favorite overall sitting at 35% of all preferences. Now some people don’t mind either new construction or existing homes. And those people make up 32% of all homebuyers. That then leaves new construction home buyers making up 33% of the overall market.
So this begs the simple question: why? Why did new construction preferences drop 9% in just 6 months? According to keepingcurrentmatters.com, there are 2 reasons as to why this is.
Reason number 1: The process may move faster. As you probably know, builders are running into material shortages which fringe upon their completion dates. But buyers are in need of homes and they don’t have time to wait around for materials. So buyers are flocking towards homes that are turn-key and ready to move in.
Reason number 2: There are no unexpected costs during the buying process. As material shortages become more common, prices of those materials start to climb. Some builders have been including escalation clauses in their contracts in hopes that they will cover any rising costs. Because of this, we can assume that some buyers don’t like that idea. And they’d rather agree to a purchase price upfront with no escalation clause. So we’ve talked a lot about buyers but what does this mean for sellers? Well if you’re a seller, understand that most buyers at this time prefer your existing home over a new build. It may be in your best interest to get in contact with us at Suburban so you can begin the selling process. That’s going to do it for us here at Suburban Snacks. If you have any questions or would like to contact us, feel free to check out our website at suburbanrealestategroup.com. Also, make sure to follow us on Facebook, Instagram and YouTube all at Suburbanrealestategroup. Thanks for watching, my name is Cheri Malozsak and we will see you in the next one!