For many years, North Carolina law has required any individual and/or company performing construction work…
If you have been involved in the housing market during the past two years as a potential buyer, you likely have numerous anecdotes regarding the difficulty of securing the purchase of a home. As someone who was unsuccessful in buying a home during the Summer of 2021, I met ample obstacles at every turn, including but not limited to, homes selling within hours of coming on the market, homes selling for tens of thousands of dollars over asking price, and high dollar figure due diligence offers. One way to avoid the headaches of buying a home already on the market is to pursue new construction, which is a decision that is growing in popularity. The good news at this point is that, for the first time in a while, there is a sense that buyers have the upper hand.
For buyers that have fought an up-hill battle for two years, it is a relief to be in this position. Now, how did the situation seemingly flip so abruptly? When you are driving in your everyday life, you likely come across new home construction on seemingly every inch of available real estate. This boom in real estate development has created the current situation. Builders have constructed more homes at this point than there are potential buyers; the downturn in buying demand is attributable to an increase in mortgage interest rates. Thus, builders are forced to take additional steps, including offering perks to buyers (a situation that was unfathomable just last year), in order to rid themselves of the homes already constructed.
If you are a prospective homebuyer, the hike in mortgage rates, along with discussion of a potential forthcoming recession, may have you experiencing cold feet before taking on a large financial commitment. However, if you are willing and able to handle the increased mortgage rates, this is a unique opportunity to have the advantage on new construction home builders. This may be the best time to capitalize on the market due to the surplus of homes that home builders have been unable to sell. Additionally, if you pursue new home construction and experience problems with your home builder, the attorneys at Hannah Sheridan & Cochran, LLP can assist in that process.