It looks like first-time homebuyers are getting their luck at realizing their dream house this year. Reports reveal that the median price of newly constructed homes has decreased, making it more affordable for interested homebuyers.
According to the U.S. Department of Commerce, the median price of newly constructed homes across the country has dropped 4.5 percent after a year and 5.7 percent from last December, Realtor.com reported.
This is said to be a good news for first-time homebuyers because this will give them the chance to realize their dream of getting their very first home because of the lower costs.
"To see growth in the new home market, we will have to see more offerings [like these] that appeal to the first-time buyer," said the publication's chief economist Jonathan Smoke.
While the costs have significantly decreased over a year, the publication noted that the median prices of new homes were still substantially higher as compared to prices of existing homes. Add this to findings that sales of newly built houses have dropped 5.2 percent after a year.
Smoke, however, shared that the month of January is often the slowest month of the year in terms of new home sales. The South remains unaffected by these figures, as the area continues to have a high demand for new homes.
Despite having a higher price for new homes, the publication stated that more people are interested in going for newer homes than existing ones. As previously reported here on Realty Today, new home construction is expected to rise in 2016.
There was a drop in the construction of new homes in January, but there was an increase in the permits secured over a year.
"You can have permits and start moving in opposite directions because they represent different things," Smoke said.
Getting new homes also give homebuyers peace of mind, as one will no longer need to worry about anyone else outbidding their offers. The maintenance costs of a newly constructed home are also found to be lower than existing ones.