New Construction Homes In Dover NH
Are you on the hunt for new construction homes in Dover NH? New construction homes are more energy efficient and many carry the modern amenities that buyers are looking for. When comparing the price of new construction homes verses existing homes, buyers are seeing they can buy more home per square foot when purchasing a new home verses an existing home. Why? Because materials are more expensive today. Labor rates in our area have been very steady over the last ten years. Here is a look at some statistics I found interesting. As a percentage of all homes sold, new construction homes sold in 2011 were 10.5%, 2012′s ratio bumped up significantly to 18.3%. 2013 saw that rate steady but this year’s ratio has fallen to 14%. There are currently over 60 new homes for sale in Dover NH
New Construction Homes Sales Lagging
From 2011 to 2012, new home sales doubled. Builders had held off during the Great Recession as home sales in general fell but ramped up in 2010 especially as mortgage rates were extremely attractive and still are. In 2013, new home sales were steady but this year sales have lagged. Why? As mentioned above, buyers see they can purchase more home when they buy an existing home verses a new home especially when you look at the price trends of new construction homes. The laws of supply and demand prove themselves in a free market and we can see inventory of new homes is up 14% from last year which may indicate why median sales price has dipped. More competition for builders means better deals for buyers.
Are New Homes Too Expensive?
It will depend on the cost of ownership. Buyers will have to decide between energy efficiency or more living space. In the case of town assessments and tax rates, will taxes be a factor? If new homes are more expensive and price trends support assessments, yes, taxes will be a factor. All the expenses of owning a home need to be considered when purchasing. A new home will cost more but may be less costly to heat and maintain. An older home may cost less but could need updates and use more energy. Your experienced agent and lender can help you determine those costs and develop a plan to meet your needs and expectations. Buyers need to go into any real estate transaction with eyes wide open. An agent with construction experience is your best bet.