Where things stand
This past April, it was reported that 60% of buyers preferred a new build over an existing home. Not surprisingly, there has since been a major shift in the mindset of buyers to favor existing homes that are relatively turn-key. These findings come from the National Association of Home Builders (NAHB), and as shown below, the percentage of buyers who prefer existing homes is on the rise, now exceeding New Construction.
Why the change?
This shift is due to all of the materials supply chain challenges that the construction industry is currently facing. Prospective buyers don’t want to have delays while contractors have to wait for key materials such as lumber and appliances. More than that, with the industry being so volatile right now with everything from materials to labor, it’s becoming a common practice that builders will include an escalation clause negotiated into the price to cover any rising costs. This is exactly why buyers are turning to the more secure, hassle free option of existing homes.
More and more, today’s buyers are looking for a hassle-free existing property where they won’t have to worry about building delays or any unexpected costs. This means that it is a great time to be selling since your house is attractive to more buyers now than it was earlier this year.