Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes

Dated: August 5 2021

Views: 190

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM

In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:

60% of people who were looking to buy a home in 2020 said they'd prefer new construction to an existing home.

However, it seems buyers are now shifting their preferences back to existing homes.

The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.

NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes | MyKCM

Why the shift?

There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:

  • The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
  • There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.

Bottom Line

If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility.

Blog author image

Beth Ross

Having moved to SC from CA in 2005 I have found this was the best decision I could have ever made. I love the areas of the Grand Strand and Pee Dee and find new places to explore every day. I was a ....

Latest Blog Posts

Buyer Knowledge Is Power When It Comes to Appraisals and Inspections

Knowledge Is Power When It Comes to Appraisals and InspectionsBuyers in today’s market often have questions about the importance of getting a home appraisal and an inspection. That’s

Read More

Supply and Demand Tipping Pricing???

How Supply and Demand Can Tip the Pricing Scales in Today's Market In today's housing market, an imbalance between supply and demand is driving up home prices. Let's connect to discuss how you

Read More

What Does the Future Hold for Home Prices?

What Does the Future Hold for Home Prices?If you’re looking to buy or sell a house, chances are you’ve heard talk about today’s rising home prices. And while this increase in

Read More

Don’t Wait for a Lower Mortgage Rate – It Could Cost You

Don’t Wait for a Lower Mortgage Rate – It Could Cost YouToday’s housing market is truly one for the record books. Over the past year, we’ve seen the lowest mortgage rates in

Read More