While news about interest rates and home prices may make the idea of buying a home sound bleak this year, the real story is much more nuanced. Although the market continues to fluctuate, seasoned home builders are familiar with an ever-changing landscape. From impressive new communities offering a better quality of life, paired with compelling incentives–builders like Highland Homes, are ready to work with new home buyers. And where it used to be that resale homes might be less expensive options, builders have more latitude to offer incentives than a typical home seller.
The State of Real Estate in Texas for New Construction Homes
Going back to 2021, the real estate market in San Antonio, like much of Texas and the United States, was dominated by low housing inventory and high prices. This created a buying frenzy, where multiple offers would drive the list price of homes well beyond what many could afford.
As interest rate increases slowed the frenzy, it also decreased the number of existing homes on the market, as homeowners didn’t want to have to find another home at higher prices and interest rates. While the buying frenzy may be gone, housing demand has not died down. 2022 Census Data ranked San Antonio as the fastest-growing city in terms of numeric population growth between 2021 and 2022. Continued growth in new job sectors across the city has continued the migration of new residents to the city.
Why You Should Consider New Homes in South Texas Today
According to the National Home Builders Association, the housing industry contributes 16-18% of the GDP (gross domestic product–the most comprehensive measure of US economic activity). The new home construction industry makes up the majority of this number, and reflects a group of seasoned businesses that understand how to be successful in changing markets. No matter the market, builders will build homes and help find ways to welcome new home buyers.
Builders like Perry Homes have a number of variables they can utilize to ensure steps forward toward progress, including: slowing down new home starts, increasing incentives to welcome more buyers, or some combination to the two. Incentives can include mortgage rate buydowns (builders will guarantee a lesser mortgage interest rate than is available through conventional lenders), credits at closing, or other means to either require less of a down payment or decrease monthly payments per each buyer’s needs. Builders understand economic cycles, and consistently work with buyers to accommodate their needs if they qualify. Many have robust buyer qualification programs to help those hoping to enhance their ability to purchase.
In San Antonio, new home communities like VIDA San Antonio on the city’s southside feature home builders that provide a variety of programs to assist purchasers. These include mortgage rate buy-downs, closing costs, and other incentives. In some communities, these incentives can add up to $30,000.
Here are four tips for deciding if now is the time to buy a new home:
- Do your homework. Know your financial situation and what you can afford in a mortgage each month. Sharing this with a homebuilder will help them guide you to options that work for your family.
- Choose location first. Pick a community in an area that works for your family. Drive around, stop and talk with neighbors, and take a look at schools. Get to know the areas where you want to own first.
- Online is not enough. It’s always great to do your research online ahead of time, but builders seldom put their incentives/offers online, as they are customized to each buyer. It is worth taking the time to visit model homes, speak to builders about what you are looking for, and learn about how they can help you. It is always advantageous to visit more than one builder, as they will compete for your business.
- It is a buyer’s market. Now is a great time to tell a new home builder what you want and what you are comfortable paying. There are more sellers than buyers in the market, meaning you have some leverage. Don’t be afraid to use it.
You might be surprised to find there are great new home options in San Antonio today, including VIDA San Antonio, which has multiple options for all home buyers.