By Melissa Dittmann Tracey | REALTORMag
Newly built single-family properties comprised a record share of homes on the market in the second quarter of the year, making up nearly one-third of housing inventory nationwide, according to new research from Redfin. New-home sales typically make up only about 10% of the market.
The National Association of REALTORS® predicts that new-home sales will rise 12.3% this year and 13.9% in 2024 as builders ramp up construction and offer more incentives to attract buyers. With the availability of existing homes at historical lows, more buyers are turning to the new-home market for greater choices. Many current homeowners remain unwilling to sell and trade in the low mortgage rate they secured a few years ago for today’s higher rates.
“New construction is the only option for many buyers,” says Shauna Pendleton, a Redfin real estate agent in Boise, Idaho. “A lot of buyers want to secure a home now because they’re worried prices are going to go back up, and new construction is more plentiful, with perks that are hard to pass up.” In Boise, new homes made up nearly 40% of the single-family inventory in the second quarter, according to Redfin’s report.