(NASDAQ: RDFN) ? Nationwide, 31.8% of U.S. single-family homes for sale in the fourth quarter were new construction, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's comparable with 31.9% a year earlier, which is the highest level of any fourth quarter on record.
Newly built homes are taking up a growing share of the for-sale housing pie for two primary reasons:
Homebuilders have been offering sizable concessions, including money for mortgage rate buydowns, to attract bidders and offload inventory. That has made it hard for some individual sellers of existing homes to compete for buyers.
"Newly built homes are selling quickly right now because builders are offering such good discounts," said Heather Mahmood-Corley, a Redfin Premier real estate agent in Phoenix. "I recently had a buyer who wasn't interested in a new construction home, but the builder offered such a good rate?5.25%?that they couldn't afford not to take it. Another one of my buyers got a $10,000 credit for closing costs from a builder."
While builders are offering discounts, they've also boosted prices, according to Christine Kooiker, a Redfin Premier real estate agent in Grand Rapids, MI.
"One of the builders in Grand Rapids that focuses on entry-level homes now has prices in the mid $300,000 range," Kooiker said. "Not long ago, buyers could get a new construction home here for $250,000 or $300,000."
Roughly two of every five (42%) new single-family homes that sold in 2022 went for $500,000 or more, up from under one-third (30%) in 2021 and 18% in 2020.
To view the full report, including a chart, please visit: https://www.redfin.com/news/new-construction-q4-2023
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.
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