People Want Less Expensive Homes – And Builders Are Responding

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.

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 percentage of the total available inventory today, that search often includes brand new homes.

People Are Spending Less on Newly Built Homes

The graph below uses the latest information from the Census to show, in June, more of the newly built home sales in this country were in lower price ranges than in 2022:

Last year, only 58% of newly built home sales were less than $500,000. This June, that number was up to 65%. This means more people are buying less expensive newly built homes right now while affordability remains a challenge. 

Builders Are Offering Lower-Cost Options

Builders have picked up on this trend and are reacting accordingly. George Ratiu, Chief Economist at Keeping Current Matters, explains:

“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .”

New data from the Census further confirms this pattern – it shows the median sales price of newly built homes has dipped down in recent months (see graph below):

And as Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says, the builders who are most responsive to this trend are forming pathways to homeownership:

 “. . . 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.”

 How an Agent Can Help

 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. 

Bottom Line

If you’re having a hard time finding a home you like in your budget, connect with a real estate professional. You need an agent who knows all about the latest inventory in your 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.

Get more info on Keeping Current Matters.

Related Links

• 4 Major No-Nos a Mortgage Lender Says to Avoid When Moving to a New State

• Yes, You Can Compete With All-Cash Buyers—Here’s How

• There's Only Half the Inventory of a Normal Housing Market Today

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado
Search Homes in Oklahoma
Search Homes in Oregon
Search homes in Minnesota

Yes, You Can Compete With All-Cash Buyers—Here’s How

To some of us, all-cash buyers are the scourge of the superhot housing market: They swoop in, supervillain-like, and snatch up the most beloved and valuable properties from under our noses.

Or at least the ones you might have loved, had you not been stuck with that pesky mortgage contingency.

Competing with cash buyers isn’t impossible, just difficult.

Sure, some sellers will take the major moolah every single time and there’s nothing you can do about it. But if you go in with a strategy, you might just have a shot. Here’s how to create one.

1. Figure out the seller’s goals

Determining what’s most important to your seller can be key to getting your dream home—even when you’re competing against an all-cash buyer.

“People often think that all sellers want the most aggressive, quick close, for the highest price. That’s not always the case,” says Shashank Shekhar, founder and CEO of Arcus Lending in San Jose, CA. When he sold his home earlier this year, the most important factor was getting back two months’ free rent, because he was also trying to buy.

“Even if the price was slightly lower but came with that offer, we would have taken that over all-cash,” Shekhar says. “Understanding what the seller needs is always the most important thing.”

2. Consider your contingencies

If you’re willing to forgo a home inspection or secondary appraisal, you may have a leg up over buyers who won’t.

“If you’re going to compete with a cash buyer, the contingencies may be a concern for a seller,” says Joe Petrowsky, a mortgage broker in Manchester, CT. “If the prospective buyer is willing to eliminate the contingencies, that may be an incentive for a seller, especially if there are some issues with the property.”

This isn’t necessarily the best strategy. Without a home inspection, for instance, the property could have crippling issues that might have precluded you from purchasing, had you known. But if you’re dead-set on this exact house and you’re pitted head to head against a cash buyer, it might be an option to consider.

Of course, there’s one contingency you can’t remove: the mortgage. (Hey, if you could, you wouldn’t be reading this right now!)

3. Get pre-approved…

You can help soften your mortgage contingency by getting pre-approved—and offering a strong pre-qualification letter from your lender. If you’ve saved up a significant down payment and have excellent credit, this might be your winning strategy.

“The seller or their agent should understand there really isn’t a chance the loan will not go forward,” says Petrowsky. With great financials and a large down payment, your mortgage officer can go to bat for you with the sellers, promising nothing serious will happen in the delicate time between offer and closure to compromise their money.

“Make your offer as cashlike as possible,” Shekhar says. “The No. 1 reason transactions fall through is because the loan gets declined during escrow.”

4. … but make sure your mortgage broker is great

“I see pre-qualifications all the time that are not worth the paper they’re written on, because the broker doesn’t know—or hasn’t done—the due diligence on the prospective buyer,” Petrowsky says.

How can you make sure your broker is worth his salt? Both Petrowsky and Shekhar recommend researching online beforehand, keeping an eye out for any negative reviews indicating mortgages that fell through at the last minute.

You’re looking for someone who’s thorough: “We do a lot of due diligence to make damn sure that person is going to get a loan,” says Petrowsky.

After all, sellers often go with all-cash “because they don’t want to get in any hassles during the loan process,” says Shekhar. “Give them that comfort, that safety.”

Keep reading.

Related Links

• 4 Major No-Nos a Mortgage Lender Says to Avoid When Moving to a New State

• 5 Easy Modifications to Make Your Home More Accessible Before Selling It

• There's Only Half the Inventory of a Normal Housing Market Today

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado
Search Homes in Oklahoma
Search Homes in Oregon
Search homes in Minnesota

Find a Dog a Home: Meet Vegas!

I'm Vegas + I'm looking for a new home!

Meet Vegas! He is a 10 year old boxer that has been owner surrendered. He's up to date on his shots, already neutered and is deserving of a wonder life to enjoy his "golden years", being in a home where he is loved. Vegas is handsome, sweet and still has a lot of pep in his step! He would be a great companion to anyone. You can find Vegas at the Carteret County Human Society, 853 Hibbs Road, Newport. Looking for a perfect dog or cat for your home? Reach out to me, I'd be happy to make a rescue connection.

---

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in North Carolina

As Featured in West + Main Home Magazine: From Inspiration to Renovation

Katy McEntire W+M Agent

“Updating our bathroom had been a dream ever since we bought our house"!”

“We had prioritized other areas of our home first, and it had taken a while for us to finally embark on this project. We knew that it would require professional help, as it was beyond our DIY expertise. With careful planning, design inspiration from online platforms, and the assistance of skilled contractors, we were able to transform our bathroom into a space that exuded lightness, airiness, and timeless elegance!"

Katy's design process began with gathering inspiration from various sources. "We saved countless photos on Pinterest and Instagram, collecting ideas for color schemes, tile patterns, cabinetry, and lighting," she said. "Our vision was to create a bathroom that felt light and airy, while also being classic in design. One of the challenges we faced was the vaulted ceiling in the bathroom, which required careful consideration when determining where to start and stop the wall tile. Once we had figured out the tile and shower configuration, the rest of the design fell into place." With a clear design plan in mind, Katy hired professionals to bring the vision to life.”

"We opted to hire out all the work, including demo, tile installation, plumbing, electrical, and cabinetry," she explained.  "The labor costs added up, but we were willing to invest in skilled labor to ensure a high-quality result. Our budget included expenses such as new cabinetry, shower glass, countertops, plumbing fixtures, lighting, and more. We were meticulous in sourcing materials that aligned with our design vision, from the Riad White Ceramic wall tile to the Emser Sterlina White Porcelain floor tile and the Luce Lazula Quartz countertops."

Along the way, the team encountered unexpected challenges, such as a color variance issue with the mosaic penny tile in the shower. Despite checking the dye lot numbers before purchasing, they faced differences in dye colors once the tile was grouted. However, they were able to resolve the issue by submitting a claim with the supplier, Floor and Decor, and they covered the cost of labor and replacement tile. It was a valuable lesson to always double-check and communicate with suppliers to avoid surprises during the renovation process!

"In the end, our bathroom transformation was worth the investment of time, effort, and budget," said Katy. "It was a significant upgrade from what we had before, and the overall design and finishes created a space that felt fresh, inviting, and timeless. Looking back, we learned that thorough research, clear communication with contractors, and staying organized were essential for a successful renovation project. We are thrilled with the final result and proud to have turned our bathroom inspiration into a reality with the help of skilled professionals."

Related Links

• As Featured in West + Main Home Magazine: A DIY with a Modern Twist

• As Featured in West + Main Home Magazine: Paving the Way for Outdoor Bliss

• As Featured in West + Main Home Magazine: From Dream to Reality

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

Search Homes in Oregon

4 Major No-Nos a Mortgage Lender Says to Avoid When Moving to a New State

Securing a mortgage can be a tricky process.

Between getting your finances in order and learning the lingo (APR, debt-to-income ratio, and LTV are just a few of the fun new terms), many people can be left feeling like their head is spinning. Add an out-of-state move to the mix, and things can become downright complicated. Ahead, loan originator Carrie Casey with Appli Home Loans shares what you need to avoid when your hunt for a new home is taking you out of state. 

Failing to Clear the Move with Your Boss

Having the ability to repay your mortgage is a major part of your loan approval, which is why Casey says you need to ensure you’ve got all of your ducks in a row with work before you make your move. 

“If you are a remote employee and are staying with your same employer in your location and purchasing a home, you will need a letter from your employer that you will be able to continue your remote job in your new location,” she explains, adding that some employers require their remote employees to remain within the state. 

Altering Your Existing Debt Profile

Another potential pitfall Casey says you need to avoid has to do with changing your existing debts. “Hold off until buying a new vehicle or selling a vehicle (selling will close that line of credit and impact your credit score negatively at least for the next month or two), avoid switching banks, don’t spend all your money you’ve set aside for your down payment and closing costs, and please don’t lie about having a job in the new location,” she continues. “We always verify!”

Trying to Hide Recent Spending

Casey knows that things can come up, which is why she says it’s important to keep an open line of communication with your lender. “If you’ve bought anything on your credit cards outside of the ordinary usage, let your lender know right away so they can determine if there’s an issue,” she says. “I once had a client book a trip to Thailand during the process and it dropped her credit score 30 points and caused her mortgage insurance rate to increase about $80 per month.”

Fortunately that borrower had a credit score in the 800s, which allowed her to take the hit to her credit. But not everyone will be that lucky. “If credit had been in the 600s it could’ve been a lot worse and it could knock someone out of qualifying.”

Putting Your Moving Expenses on Plastic

Long-distance moves can wreak havoc on your budget, as they tend to be more expensive than local ones. Some people may be tempted to put those initial fees and charges on their credit cards to help offset the costs, but Casey says that can spell trouble for your application — even if you plan to pay them off right away. 

“The charges affect your credit immediately, but the credit bureaus can take a month to reflect after paying the credit cards back down,” she explains. “If there is a major credit issue while under contract on a home, there is something called a ‘rapid rescore.’ It involves following a set of instructions to get credit back in line by paying down specific lines of credit, but it can be costly and difficult to do if you don’t have the funds.”

If you have the funds in your bank account, Casey says that she recommends going that route rather than putting anything on credit. And when in doubt, talk it out! Your lender should be able to answer any questions you may have, so give them a call before making any changes before your loan closes.

Get more like this on Apartment Therapy.

Related Links

• The Perfect Backyard Additions for Late Summer and Early Fall

• 5 Easy Modifications to Make Your Home More Accessible Before Selling It

• There's Only Half the Inventory of a Normal Housing Market Today

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado
Search Homes in Oklahoma
Search Homes in Oregon
Search homes in Minnesota