{"id":76998,"date":"2023-10-31T05:00:31","date_gmt":"2023-10-31T12:00:31","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=76998"},"modified":"2023-10-30T16:16:43","modified_gmt":"2023-10-30T23:16:43","slug":"new-construction-homes-q3-2023","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/new-construction-homes-q3-2023\/","title":{"rendered":"Almost a Third of Homes for Sale Are New Construction\u2014the Highest Share of Any Third Quarter on Record"},"content":{"rendered":"

New builds are taking up a growing share of the pie as builders attract buyers with concessions, and surging mortgage rates prevent existing homeowners from selling.<\/span><\/i><\/h2>\n

Nationwide, 30.6% of U.S. single-family homes for sale in the third quarter were new construction\u2014the highest share of any third quarter on record. That\u2019s up from 28.9% one year earlier and 25% two years earlier.<\/span><\/p>\n

\"\"<\/span><\/p>\n

Newly built homes have taken up a growing share of for-sale housing inventory partly because homebuilding has <\/span>increased<\/span><\/a> and partly because the number of existing homeowners putting their houses up for sale has <\/span>decreased<\/span><\/a> as mortgage rates have <\/span>surged<\/span><\/a> to a 23-year high of roughly 8%.<\/span><\/p>\n

High mortgage rates have pushed a lot of buyers to the sidelines, but many of the buyers who are in the market are opting for new construction homes because builders are handing out <\/span>concessions<\/span><\/a> like mortgage rate <\/span>buydowns<\/span><\/a> in order to attract bidders and offload inventory. Purchases of new single-family homes jumped <\/span>12.3%<\/span><\/a> last month\u2014the fastest pace since early 2022. It\u2019s worth noting that the latest run up in mortgage rates <\/span>could<\/span><\/a> slow new-home construction.\u00a0<\/span><\/p>\n

\u201cSellers are facing tough competition from homebuilders, who are sometimes offering buyers up to $30,000 worth of concessions,\u201d said <\/span>Kim Lotz<\/span><\/a>, a <\/span>Redfin Premier<\/span><\/a> real estate agent in <\/span>Phoenix<\/span><\/a>. \u201cWith that kind of money, a buyer can cover closing costs, home upgrades, and buy down their mortgage rate. In some cases, people who purchased a house from a builder a year ago are selling and competing against that same builder for buyers.”<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

New builds are taking up a growing share of the pie as builders attract buyers with concessions, and surging mortgage rates prevent existing homeowners from selling. Nationwide, 30.6% of U.S. single-family homes for sale in the third quarter were new construction\u2014the highest share of any third quarter on record. That\u2019s up from 28.9% one year […]<\/p>\n","protected":false},"author":13346,"featured_media":77001,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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