Why Only 14% of Buyers are Purchasing New Homes (and What This Means for You)

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Many people miss out on the opportunity new homes provide buyers. With only 14% of buyers purchasing new homes, the options for quality properties are available to those who can access them. Colorado Springs communities like Briargate are great spots to search for new homes. For a better understanding of buyer trends and how to take advantage of them, read the information below.

Factors in low buyer percentages

There are many reasons buyers are purchasing Briargate new homes at lower rates. Trends in rising mortgage rates and low inventory decrease buyer power and sales. New homes also require more material and labor costs, which faced complications during 2021.

Rising mortgage rates

The factor impacting most buyers across Colorado Springs and the United States is rising mortgage rates. On the seller side, homeowners may be daunted by high rates. Rather than list their properties, they choose to keep their low rate and wait to sell when market trends are more favorable. Buyers may find more obstacles with financing a home. Higher interest rates mean they don’t have the same buying power as before.

Combined, these forces have slowed purchases across all property types, including new homes. The average Colorado interest rate for a 30-year fixed loan is 6.43%. For 15-year fixed loans, the average interest rate is 5.75%. Most new homes and new constructions have higher costs than previously owned homes. This can make them unattainable to some buyers.

Lack of inventory

When searching for houses for sale in Briargate Colorado Springs, buyers will feel the lack of inventory. There is only 1.58 months of supply in the area, which is very low. In comparison, a balanced market has between four and six months of inventory. Even so, inventory levels have seen a 436.8% increase compared to last year. The number of homes for sale has also increased, up by 4% compared to the same time last year.

The lack of inventory limits the number of homes that can be sold. Even if there is buyer demand for new homes, there isn’t the supply to meet it. This is a common trend throughout Colorado Springs and the rest of the state. However, current trends are encouraging. A slowdown in market trends will help inventory to replenish itself. This gives buyers more opportunities to purchase properties.

Material and labor costs

When planning new home constructions, access to the right materials and labor has been a struggle in the past couple of years. Economic factors have made access to materials less reliable, which slows down the building process. This, combined with labor shortages, makes building a new home time-consuming and costly. Rather than wait for a home to be built or to avoid higher costs, buyers may choose to search for pre-owned homes instead.

Perks for buyers

There are many perks that come with buying a new home. As market trends tip further in buyers’ favor, it will become easier for buyers to search for Briargate new homes. As they’re recent constructions, they often come with fewer problems and more upgrades. Communities with new home constructions also feature many amenities.

Cooling market trends

Overall, the market in Colorado Springs is a neutral market. Gone are the days of a crazed seller’s market and bidding wars. This is great news for buyers. Sold listings have decreased 36.2%. This means that there’s less competition between buyers. Active listings have also increased, up 184%. The combined forces of fewer buyers and more options create a market that’s easier for buyers to negotiate in. Buyers should take advantage of trends today when searching for new homes.

New home amenities

New homes also come with many perks that older homes lack. Most importantly, they provide a blank slate for buyers. Buyers can count on newer electrical systems, plumbing, HVAC systems, and everything that goes into making the home function. This decreases the risk of costly repairs in the near future. Appliances in the home are likely to be the most recent iteration. In other words, buyers themselves get to break in the home.

Since homes are new, they are also low maintenance and usually energy efficient. The materials used in construction help insulate the interior. This saves buyers from extra utility costs. Depending on where the new home is built, most are customizable as well. This gives buyers the unique opportunity to create a home geared toward all their needs and preferences.

Why Briargate is for you

Houses for sale in Briargate Colorado Springs feature many location perks that other new homes don’t have. This master-planned community is a favorite with families for its single-family home options. Buyers can choose from existing properties, and empty lots for custom home builds. Briargate also has many different neighborhoods that fit a variety of needs. The community itself provides easy access to the rest of the county via the highway nearby.

Briargate provides many outdoor spots to play and exercise. Trails surround the community. The John Venezia Park is complete with a water park, tennis courts, and sports fields. The Promenade Shops at Briargate and the Chapel Hills Mall offer varied shopping and amenities. The community itself is within the bounds of the D20 Academy School District. Families appreciate this accomplished district. Enjoy all the perks of a new home living surrounded by Colorado views.

Ready to purchase a new home?

With fewer people buying new homes, less competition provides the perfect opportunity for buyers to search for their dream property. New home searchers face obstacles like high mortgages, low inventory, and higher costs for material and labor. Even so, cooling market trends make it easier to look for new home opportunities than in years past. Communities like Briargate are a great spot to start your search. A local agent can describe the perks of the area and plan your purchase with market trends in mind. When you’re ready to search for homes, contact experienced local agent Chad Penkhus for expert service.

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