Home News The number of homes for sale that haven’t even been built yet now sits at its highest level on record. Here’s what home buyers need to know about that trend

The number of homes for sale that haven’t even been built yet now sits at its highest level on record. Here’s what home buyers need to know about that trend

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What you need to know if you buy a house that hasn’t been built yet

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So you bought a house, but hasn’t it been built yet? Sounds strange, but this isn’t a new issue, but it’s becoming more common as housing demand is rising and supply is declining. ((((See the lowest mortgage rates you might qualify here.. )

According to the latest data According to the US Census Bureau, the number of new homes available for sale increased 3.8% in March to 407,000. More than half of this increase is due to homes for sale that the contractor has not started to build. According to provisional seasonally adjusted figures, this figure is currently at its highest level since the government began collecting this data in 1999. It was 105,000 in March, 97,000 last month and 77,000 last year.

“While higher mortgage rates are expected to put more pressure on sales, demand appears to be faster than homebuilders complete construction. Many homebuilders are accepted. We continue to report that we are limiting the number of orders, “writes Mark Parim. In a statement, Fannie Mae’s Deputy Chief Economist.

Builders struggle to keep up with demand, but sales are stable every month as buyers are willing to invest in new homes right now rather than waiting for the market to change later. “These are signals that people are hoping that things will be more affordable,” Hamilton Fout, vice president of economic and strategic research at Fannie Mae, tells MarketWatch Picks. “People are looking at what they can buy because they think they will pay later if they don’t buy it now.”

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If you are interested in buying a home now and have bought or have bought a home that has not yet been built, consider the following:

1.1. Get to know the whole team

It’s understandable that when you buy a new home, the only thing in your mind goes into it so that you can finally decorate it and make it your own. However, it is important not only to stay patient, but to get used to the specifications without taking shortcuts. Go to the site and meet the team at the site who manages the construction of your new home. Get to know the project manager and supermarket. These relationships only help you have a frank conversation about the build as it progresses.

2.2. If you need it, have a nest egg for temporary housing

Fortunately, if you have blood or a chosen family while waiting for the construction to complete, take advantage of the free or discounted rent offer whenever possible. But keep in mind that markets are unpredictable and even experts cannot say for sure when or may change the price of homes and rents. If construction takes longer than expected and you need to find a different living environment, prepare a small nest egg for temporary rental as needed.

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3.3. Get inspected – 2 times

For new homes, we recommend doing two tests. One is under construction before hanging drywall. This allows you to properly inspect framing, electrical wiring, and plumbing. Second, when the house is complete, and before you move. You may have to take a little extra steps to do the first inspection (hire an inspector; coordinate with the builder for the inspection), but work with your contractor / builder Home You can rest assured when it is complete.

4.4. Do your own inspection

The building is built and you’ll notice a visual red flag, so it’s okay to roam the property. You may not be an expert, but if something looks wrong to you, it’s worth asking the builder. After all, it’s your home.

5.5. Create a detailed final punch list

Before you finish, make sure the developer does the final walkthrough of the property with you. Then you can create a punch list of to-do items. This punch list must be completed before it can be closed and cannot be added later. Please describe in as much detail as possible. You can also hire a specialist of your choice to do the walkthrough. This is the last chance to get everything right before closing.

But should you buy now? Professionals tell you that pressure doesn’t drive you to buy when you’re not ready. “Very strong rent growth makes it very attractive for investors to buy real estate,” Fout said. “But as mortgages grow, people may withdraw from the market, at which point you may find it relatively easy to buy.”

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