Is NOW a Good Time to Consider a New Construction Home?

Is NOW a Good Time to Consider a New Construction Home?

Is now a good time to buy a new home and the answer is kind of yes because I'll tell you why. You know about a year ago the interest rates were really low. There was ton of buyers out there and the builders were in a very lucrative position. They really didn't need to incentivize buyers because they had the

supply, what everybody wanted, new homes and there were more buyers in the market than than there were homes and so they were in a very leveraged position. Now that has changed because now that the interest rates are higher there are fewer buyers out there to purchase these new homes and so what's happening is

that builders are offering incentives to buyers. Things like paying their closing costs. For instance if you use a home loan you're likely to pay about 3% of the sales price in closing costs. So on a $200,000 home that could be you know upwards of $6,000. Right now builders are offering to pay those closing costs

for you so that can you know it saves you money right there. Another thing that builders are doing is they're offering to do a mortgage rate buy down on your behalf. So what you can do is and maybe you got quoted a six and a half percent interest rate but the builder might be willing to pay a certain amount of money

and chop that down maybe a half point maybe a full point maybe even more and that's going to have a pretty big impact on what you pay on your monthly mortgage. And so right now is it is a pretty good time to think about new construction because you're in a position now to take advantage of these builder incentives

that they're offering.