The DC Metro real estate market has largely catered to sellers in recent years, and shows no signs of changing any time soon. Increasing sale prices and the decreasing inventory affords sellers the luxury of listing their homes at higher price points with little pressure to accept lower offers. While sellers are relaxing, buyers are scrambling to compete in intensive bidding wars where all-cash offers and no contingencies are not uncommon. To alleviate the stress and financial woes of resale purchasing, many buyers are considering new construction as a solution.
This past August marked the 11th consecutive month that median home prices increased YoY for the DC Metro, while inventory fell for the 16th consecutive month. Properties are selling higher and faster than ever before, with many homes going under contract in under 7 days. Buyers are being forced to pay more, while only having a few days to jump on a deal before it is too late. Many buyers believe this is their only choice, forcing them to overspend with the risk of committing to a potentially problematic property.
New construction offers an alternative option, without the headaches of the resale buying process. Buying newly constructed homes allows complete transparency during negotiations, ensuring the buyer feels confident in their decision to purchase a home that will last. Often times, it also provides the buyer with an opportunity to customize certain features of the home – enabling them to truly put their own mark on the new home. Additionally, new homes are typically more energy efficient overall, saving homeowners a considerable amount on utility costs.
Timing is everything in the real estate world and now is the time to take advantage of new construction. Buildable lots are beginning to become scarcer while material and labor costs are expected to increase significantly in coming years. According to the U.S. Bureau of Labor Statistics, the shortage of skilled labor will force wages to increase 3-4% in 2018, while material costs, such as lumber and glass, are expected to increase 2-3% as well. Rising costs will result in higher prices and fewer new homes being built – now is the perfect time to purchase, before the construction industry begins to feel the market tighten.
Buying a home is often the largest financial decision of an individual’s life, and one should never feel rushed or pressured into a decision. If you’d like some assistance in finding a new home or finding the right builder to construct a custom home, contact us: firstname.lastname@example.org.