Should I Buy A New Construction Home in 2022?

Should I buy a new construction home in 2022

Should I buy a New Construction Home in 2022? In 2021, the answer was a resounding “YES!”. Interest rates hit historic lows. Even though home prices went in the other direction, people were eagerly buying homes. 

So, why is it a question this year? Yes, interest rates have gone up, but they’re still really good! If you’re not convinced, look at the history of interest rates for a 30-year fixed rate mortgage.

197810.1%
198118.4%
19899.78%
19986.91%
20095.4%
20104.0%
20123.35%
20204.0%
20212.7%
20225.3%
History of Interest Rates

We’re seeing rates readjusting from incredibly low to more in line with the way they’ve been this century. So, why are so many people concerned about buying right now? It’s still a great time to buy a new construction home in 2022!

The sooner you buy a new home, the better off you’ll be financially. Rates will continue to inch upwards. Home prices will go up. So it will cost you more to buy a new home if you keep waiting. Buy now and you’ll start to gain equity right away. Your home is not an expense. It’s an investment. It’s a great time to invest in your future!

Are you ready to buy?

The right question isn’t “Should I buy a new construction home in 2022?” but “Am I ready to buy a home?” 

Are you in the right situation to buy a new home? 

  • You have a good credit rating that will enable you to get the best rate possible. A great credit score is at least 750. The National Association of Realtors offers insight into how your credit score is calculated.
  • You’ve put away enough money for the down payment. While you don’t need a 20% down payment to buy a home, the more you can put down on the purchase, the lower your monthly mortgage payment. As the price of homes goes up, the amount required for a down payment increases as well, which is the cost of waiting.
  • You have job security. You aren’t worried about keeping your income flowing to cover the monthly mortgage payment.
  • You can afford the maintenance on your home. The purchase price is just the start of the total cost of ownership. Home repair, replacing systems like the air conditioning or furnace, and any renovations you need should be factored into your budget. It’s a difficult situation when you put all your money into buying a home and then can’t pay for the upkeep! This is one reason people choose a new construction home that doesn’t have those maintenance costs. But we’ll get to that in a bit. Take a look at Zillow’s guide to preparing your finances for buying a home. 

Determine if you’re in the right situation to purchase a home and then look at the reasons why buying a new home is better than a resale.

New home or resale?

Your next decision about buying a new home is whether you choose a new construction home or resale. An existing home might be less expensive, but is it really?

Think about buying a car. You can get “a deal” on a pre-owned vehicle. It doesn’t have the same value because there are miles on it. You don’t know how the previous owner maintained it. You might need to buy new tires, replace the brakes, or just go without some of the features of new cars. Maybe you don’t really need the back-up camera or the heated seats, but if you’re being honest with yourself, those would be great to have, right?

Apply the same principles to new construction versus a resale home. The older home has more “miles” on it. The roof might need replacement soon. The exterior could use a paint job. The water heater is getting older and you’re also not certain how long the furnace will last. So, while you’re technically paying less on your monthly mortgage payment, you could be funneling those savings into maintenance and repair of your resale home.

New construction homes, on the other hand, are brand new, top to bottom. From the roof to the foundation, everything is covered by a warranty. Everything, including all of your appliances, come with a guarantee. You won’t have to worry about those horrible surprises that strain your bank account, because you’re covered.

And it’s not just the warranty but the updated features. You get the benefit of the latest in energy efficiency in materials, products, and construction methods. With more energy efficiency, you’ll save in your utility bills.

You should also consider the value of such up-to-the-minute features like CAT6 cable. New Home Inc. includes this in our new construction homes for sale in Raleigh and the surrounding areas. You don’t have to rewire your home to get the fastest data transfer rate available and you don’t have the annoyance of Wi-Fi dead zones in your home.

Add it up. How much do you think you’re going to save by getting a pre-owned home?

Making it easier to buy new

Anyone in the homebuying market has probably heard the stories about the difficulty in getting the home they want. Why are you getting into a bidding war for a home you don’t love and THEN pay more than the asking price?

New Home Inc. is making it easier to buy a new construction home in Raleigh and the Raleigh suburbs. We examined the challenges that buyers and builders were facing. Then we set about making the new home buying process easier. We’ve explored the source of delays and developed a solution to work around the causes of the delay—working closely with suppliers and organizing work schedules to ensure we have full, skilled crews where and when we need them.

We’ve also improved the design of new homes, making the “Future-Proof” and adding more features you should have, like indoor air quality, smart home automation, more storage and workspace in the kitchen, CAT6 cable, and much more. Still unsure? We have the answers to your most frequently asked questions about buying a new construction home in 2022. Who is New Home Inc? A builder that is concerned about your needs, about making the home buying process enjoyable. Get in touch with us to see why you should buy a new construction home in 2022.