[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$fss6y4olg5rdi":3,"$ffeh0925h8cuz":43,"$fbwk2pqjjqsc7":47},{"item":4,"previous":31,"next":37},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":29,"updatedAt":30},15453,"people-want-less-expensive-homes-and-builders-are-responding","People Want Less Expensive Homes – And Builders Are Responding","\u003Cp>In today’s housing market, there are two main affordability challenges impacting buyers: mortgage rates that are higher than they’ve been the past couple of years, and rising home prices caused by low inventory.\u003C\u002Fp>","","blog","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-People-want-less-expensive-homes-and-builders-are-responding.jpg","\u003Cp>In today’s housing market, there are two main affordability challenges impacting buyers: \u003Ca href=\"\u002F2023\u002F08\u002F03\u002Fhow-inflation-affects-mortgage-rates\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">mortgage rates\u003C\u002Fa> that are \u003Ca href=\"\u002F2023\u002F07\u002F19\u002Fexplaining-todays-mortgage-rates\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">higher\u003C\u002Fa> than they’ve been the past couple of \u003Ca href=\"https:\u002F\u002Fwww.freddiemac.com\u002Fpmms\u002Farchive\" rel=\"noopener noreferrer\" target=\"_blank\">years\u003C\u002Fa>, and rising home prices caused by \u003Ca href=\"\u002F2023\u002F08\u002F08\u002Ftheres-only-half-the-inventory-of-a-normal-housing-market-today\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">low inventory\u003C\u002Fa>. To overcome those challenges, many people are working with their agents to find less expensive homes. And with newly built homes making up a historically large \u003Ca href=\"\u002F2023\u002F06\u002F29\u002Fwhere-will-you-go-if-you-sell-newly-built-homes-might-be-the-answer\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">percentage\u003C\u002Fa> of the total available inventory today, that search often includes brand new homes.\u003C\u002Fp>\u003Ch4>\u003Cstrong>People Are Spending Less on Newly Built Homes\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>The graph below uses the latest information from the \u003Ca href=\"https:\u002F\u002Fwww.census.gov\u002Fconstruction\u002Fnrs\u002Findex.html\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cem>Census\u003C\u002Fem>\u003C\u002Fa> to show, in June, more of the newly built home sales in this country were in lower price ranges than in 2022:\u003Ca href=\"\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-Newly-built-home-sales-by-price-segment.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-Newly-built-home-sales-by-price-segment.png\">\u003C\u002Fa>Last year, only 58% of newly built home sales were less than $500,000. This June, that number was up to 65%. \u003Cstrong>This means more people are buying less expensive newly built homes right now while affordability remains a challenge. \u003C\u002Fstrong>\u003C\u002Fp>\u003Ch4>\u003Cstrong>Builders Are Offering Lower-Cost Options\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp>Builders have picked up on this trend and are reacting accordingly. George Ratiu, Chief Economist at \u003Cem>Keeping Current Matters\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Ftwitter.com\u002FKCMcrew\u002Fstatus\u002F1684206839523684355\" rel=\"noopener noreferrer\" target=\"_blank\">explains\u003C\u002Fa>:\u003C\u002Fp>\u003Cblockquote>\u003Cem>“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Cp>New \u003Ca href=\"https:\u002F\u002Fwww.census.gov\u002Fconstruction\u002Fnrs\u002Findex.html\" rel=\"noopener noreferrer\" target=\"_blank\">data\u003C\u002Fa> from the \u003Cem>Census\u003C\u002Fem> further confirms this pattern – it shows the median sales price of newly built homes has dipped down in recent months (\u003Cem>see graph below\u003C\u002Fem>):\u003Ca href=\"\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-Newly-built-home-prices-reflect-smaller-homes.png\" rel=\"noopener noreferrer\" target=\"_blank\">\u003Cimg src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-Newly-built-home-prices-reflect-smaller-homes.png\">\u003C\u002Fa>And as Mikaela Arroyo, Director of the \u003Cem>New Home Trends Institute \u003C\u002Fem>at\u003Cem> John Burns Real Estate Consulting\u003C\u002Fem>, \u003Ca href=\"https:\u002F\u002Fwww.marketwatch.com\u002Fstory\u002Fthe-shrinking-american-home-as-demand-rises-builders-go-smaller-ed2a327c?siteid=msnheadlines\" rel=\"noopener noreferrer\" target=\"_blank\">says\u003C\u002Fa>, the builders who are most responsive to this trend are forming pathways to homeownership:\u003C\u002Fp>\u003Cblockquote> \u003Cem>“. . . \u003C\u002Fem>\u003Cstrong>\u003Cem>it is creating opportunities for people to be able to afford an entry-level home in an area\u003C\u002Fem>\u003C\u002Fstrong>\u003Cem>. . . . if you get that size down, that automatically will make it a more affordable home. The [builders] that are decreasing [size] the most are probably the ones that try to build more of an affordable product.”\u003C\u002Fem>\u003C\u002Fblockquote>\u003Ch4> \u003Cstrong>How an Agent Can Help\u003C\u002Fstrong>\u003C\u002Fh4>\u003Cp> Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed. If you’re hoping to buy a home soon, partner with a local real estate agent to find out what’s available in your area. An agent can help you look at newly built homes or ones under construction nearby. \u003C\u002Fp>","\u003Cp>If you’re having a hard time finding a home you like in your budget, let’s connect. You need a \u003Ca href=\"\u002F2023\u002F08\u002F09\u002Fthe-value-of-an-agent-when-buying-your-new-construction-home\u002F\" rel=\"noopener noreferrer\" target=\"_blank\">real estate professional\u003C\u002Fa> who knows all about the latest inventory in our area, including homes still under construction or just built. That way you have an expert on your side who can provide information on builder reputations, builder contracts and negotiations, and more to help you with the homebuying process.\u003C\u002Fp>","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230816\u002F20230817-Newly-built-home-sales-by-price-segment.png",false,[17,21,25],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},9,"Home Prices","home-prices",{"id":26,"name":27,"slug":28},35,"Mortgage Rates","mortgage-rates","2023-08-17T10:30:00Z","2023-08-17T10:30:42Z",{"id":32,"slug":33,"title":34,"featuredImage":35,"publishedAt":36,"contentType":10,"isVideo":15},15445,"dont-expect-a-flood-of-foreclosures","Don’t Expect a Flood of Foreclosures","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230814\u002F20230816-dont-expect-a-flood-of-foreclosures.jpg","2023-08-16T10:30:00Z",{"id":38,"slug":39,"title":40,"featuredImage":41,"publishedAt":42,"contentType":10,"isVideo":15},15455,"dont-expect-a-wave-of-foreclosures-infographic","Don’t Expect a Wave of Foreclosures [INFOGRAPHIC]","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fcontent\u002Fimages\u002F20230816\u002FDont-Expect-A-Wave-Of-Foreclosures-KCM-Share.png","2023-08-18T10:30:00Z",{"cover":44,"open":45,"shareSpread":46},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[48,52,53,57,61,65,66,70,74,75,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147,151,155],{"id":49,"name":50,"slug":51},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":54,"name":55,"slug":56},6,"For Sellers","sellers",{"id":58,"name":59,"slug":60},7,"Foreclosures","foreclosures",{"id":62,"name":63,"slug":64},8,"Infographics","infographics",{"id":22,"name":23,"slug":24},{"id":67,"name":68,"slug":69},11,"First-Time Buyers","first-time-buyers",{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":26,"name":27,"slug":28},{"id":76,"name":77,"slug":78},38,"Move-Up","move-up",{"id":80,"name":81,"slug":82},41,"For Sale by Owner","for-sale-by-owner",{"id":84,"name":85,"slug":86},42,"Featured","featured",{"id":88,"name":89,"slug":90},45,"New Construction","new-construction",{"id":92,"name":93,"slug":94},52,"Luxury \u002F Vacation","luxury--vacation",{"id":96,"name":97,"slug":98},53,"Rent vs. Buy","rent-vs-buy",{"id":100,"name":101,"slug":102},80,"Time-sensitive","time-sensitive",{"id":104,"name":105,"slug":106},81,"Outdated","outdated",{"id":108,"name":109,"slug":110},147,"Internal","internal",{"id":112,"name":113,"slug":114},148,"Do Not Autopost","do-not-autopost",{"id":116,"name":117,"slug":118},320,"Inventory","inventory",{"id":120,"name":121,"slug":122},321,"Agent Value","agent-value",{"id":124,"name":125,"slug":126},322,"Affordability","affordability",{"id":128,"name":129,"slug":130},323,"Buying Tips","buying-tips",{"id":132,"name":133,"slug":134},324,"Downsize","downsize",{"id":136,"name":137,"slug":138},325,"Economy","economy",{"id":140,"name":141,"slug":142},326,"Equity","equity",{"id":144,"name":145,"slug":146},327,"Forecasts","forecasts",{"id":148,"name":149,"slug":150},328,"Selling Tips","selling-tips",{"id":152,"name":153,"slug":154},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":156,"name":157,"slug":158},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]