Addressing Affordability: Builders Respond to Growing Demand for Budget-Friendly Homes

In the current real estate landscape, prospective buyers face two significant challenges in terms of affordability: the recent increase in mortgage rates compared to the past couple of years, and the upward trajectory of home prices due to a limited housing inventory. In a bid to overcome these obstacles, a rising number of individuals are collaborating closely with their real estate agents to identify more economical housing options. This pursuit often leads them to consider newly constructed homes, which currently constitute a historically substantial portion of the available housing stock.   A Shift Towards More Economical Choices Analyzing the latest data from the Census, the graph below illustrates a noteworthy trend: a greater proportion of newly built homes sold in June fell within lower price ranges compared to the statistics from 2022: The previous year saw just 58% of newly constructed homes sold for less than $500,000. However, in June of the present year, this figure had risen to 65%. Consequently, an increasing number of individuals are investing in newly built homes with lower price tags, a strategic move given the ongoing affordability challenges.   Builders Responding with Cost-Effective Alternatives Builders have astutely recognized this evolving consumer preference and are proactively adapting their strategies. George Ratiu, the Chief Economist at Keeping Current Matters, offers insights into this phenomenon: “Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .” Recent Census data validates this observation, revealing a decline in the median sales price of newly constructed homes in recent months (as depicted in the graph below). Mikaela Arroyo, the Director of the New Home Trends Institute at John Burns Real Estate Consulting, further emphasizes that builders who adeptly embrace this trend are paving the way for more accessible homeownership opportunities: “. . . it is creating opportunities for people to be able to afford an entry-level home in an area. . . . 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.”   The Role of a Knowledgeable Agent The shift towards constructing smaller, more budget-friendly homes extends valuable options to aspiring homeowners during a time when affordability is paramount. If you're on the lookout for a new home in the near future, it's advisable to team up with a local real estate agent who possesses in-depth insights into available options within your region. Such an agent can help you explore both newly built properties and those currently under construction nearby.   If you're encountering challenges in discovering a home that aligns with your financial parameters, it's prudent to engage the services of a seasoned real estate professional. A knowledgeable agent possesses a comprehensive understanding of the latest housing inventory in your area, encompassing properties still in the construction phase or recently completed. By doing so, you'll have a skilled expert by your side, equipped to furnish information on builder reputations, contract negotiations, and more—vital resources that streamline your homebuying journey.

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Exploring Spokane's New Construction Community: Stone Hill by Lennar in Liberty Lake

  Today we are taking a close look at one of my favorite new construction communities in Spokane, Washington. Situated in Liberty Lake, Stone Hill by Lennar offers a range of homes in the mid-price point, from four to six hundred thousand dollars. This community has a lot to offer and could be an excellent investment opportunity in the Spokane area. Join me as we delve into the exciting features and amenities this development has to offer.   Location and Proximity: Stone Hill is located on the eastern edge of Liberty Lake, offering residents easy access to both Coeur d'Alene, Idaho, and downtown Spokane. This makes it an ideal choice for those who love the idea of living near Idaho but prefer more affordable options. The proximity to both cities makes dining, entertainment, and outdoor activities easily accessible.   Lennar as a Builder: Lennar, a relatively new builder in Spokane, has gained a reputation for its high-quality construction and appealing floor plans. Stone Hill is their largest project in the area, and the standard finishes, layouts, and options offered by Lennar have attracted many homebuyers.   Diverse Housing Options: Stone Hill offers a wide variety of housing options, catering to various needs and preferences. You can find homes with three bedrooms and two baths, as well as larger five-bedroom, three-bath houses. Additionally, there are townhomes available in the community, providing even more diversity in housing choices.   Community Development and Amenities: The development of Stone Hill is carefully planned, offering a mix of housing types, including townhomes and potential future apartments. The community will have several parks, creating a family-friendly environment for residents to enjoy. The addition of commercial shops and amenities in the future will add to the overall appeal of this neighborhood.   Strategic Pricing and Investment Potential: Stone Hill's early phase construction presents an excellent opportunity for buyers to get in at a discounted price. The Hazelwood and Golden Wood models, for instance, have seen price increases within just a few months, showcasing the community's strong investment potential. Lennar is planning for phases two and three to be even more profitable, making Stone Hill a compelling long-term investment option.   If you're considering a new construction home in the Spokane area, Stone Hill by Lennar in Liberty Lake should be high on your list. The community's strategic location, quality construction, and diverse housing options make it an attractive choice for both homebuyers and investors. With its proximity to both Spokane and Coeur d'Alene, along with planned amenities and commercial spaces, Stone Hill has all the ingredients to become a thriving and sought-after neighborhood. Whether you're looking for a primary residence or a profitable long-term investment, consider exploring the offerings of Stone Hill by Lennar. Don't miss out on this fantastic opportunity to be part of a vibrant and growing community in the Spokane area.

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Here's Why You Should Consider Buying New Construction in Spokane

Finding the perfect house in today's limited housing market can be a challenge, especially in Spokane. With a shortage of available homes for sale, it may feel like an uphill battle to find your dream home. However, there is a solution worth considering: newly built homes.   The latest data from the U.S. Census brings positive news for those searching for a home in Spokane. In the first three months of this year, there have been notable developments: Increased Completion of New Homes: More newly constructed homes have been completed and are ready for sale in Spokane. This expanded inventory provides you with a greater number of move-in-ready options to consider. Growing Construction of Single-Family Homes: Builders in Spokane have broken ground and commenced construction on a higher number of single-family homes. This means there are more properties in the early stages of development, offering you the opportunity to customize a home according to your preferences. Rise in Building Permits for Single-Family Homes: The number of permits issued for building new single-family homes in Spokane has seen an upward trend. This indicates that builders are gearing up to start even more home construction in the near future.   While these developments broaden your options for home search in Spokane, there are additional advantages to be gained from considering a newly built home. Customization: When you purchase a newly constructed home in Spokane, you have the opportunity to tailor it to your specific needs and tastes. Rather than wishing for certain features or amenities, you can customize the property to meet your exact requirements. Brand New Everything: One of the significant perks of a new home is that everything within it is brand new and untouched. From the flooring to the appliances, everything is fresh and exclusively yours from day one. Minimal Repairs: With a new home, you can expect fewer maintenance and repair needs initially. Should any issues arise, many builders include manufacturer warranties and additional home warranties, providing you with peace of mind. Energy Efficiency: Building a home in Spokane allows you to incorporate energy-efficient options, which can lead to long-term cost savings. Given the current economic climate with rising costs, these energy-efficient features become even more valuable. In conclusion, if you're struggling to find your dream home in the competitive housing market of Spokane, considering a newly built home could be the ideal solution. Connect with a local real estate professional who can guide you through the available options and help you find the perfect newly constructed home in Spokane.

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