Is Now a Good Time to Buy New Construction in Austin and Georgetown?

Home Built by Robbie Johnson, Stillwater Custom Homes

On Wednesday, August 14, 2024, the following headline snagged my attention. “Homebuilder Confidence Moves Lower as Market Waits for Rate Cuts.” The National Association of Home Builders reported, “That 33% cut home prices to bolster sales in August”…and “The use of sales incentives increased by 64% in August,” the highest since April 2019.

My Immediate Response?

“Buy new construction now and thank me later.” You may reply, “Ivy, you sound like a realtor.” I am a REALTOR® and when new construction goes on sale, I want my clients to know about it! I don’t believe buyers must wait until prices go up and the incentives evaporate before purchasing a home. Therefore, let me identify eight reasons why new construction may be a smart choice.

Reason #1: Incentives

Builders only remain in business because they keep building and selling houses. Right now, they are motivated big time. What kind of incentives might you find? Depending upon the builder and the location, I’ve seen free upgrades, appliance packages, downpayment assistance, lower interest rates, and money directed toward closing costs.

Reason #2: Energy Efficiency

LEED or EnergyStar certifications accompanied by energy-efficient appliances, windows, and insulation make for lower utility bills and smaller carbon footprints. This sets new construction apart for those eager to save money while saving the planet. The difference between a 25-year-old resale and a new build can be a 30% utility savings.

Reason #3: Lower Ownership Costs

An older resale often offers mature landscaping, good bones, and a lot of unknowns. Frequently, a home inspection report may call out need-to-be-replaced roofs, wobbly HVAC systems, well-worn appliances, iffy irrigation, and an assortment of leaks, creaks, and foggy windows. Is this true of all resale homes? Of course not. However, several of my buyers have found themselves torn between buying a charming older home and wanting everything to be brand new. Brand new comes with new construction and a minimum one-year roof-to-slab warranty. Some builders even extend this protection.

Reason #4: Contemporary Styling

Remember…honey oak cabinets in the galley kitchen, formal living rooms with hefty drapes and wall-to-wall carpet, single sink hallway baths, primary bedrooms with a minor closet, and diminutive bathroom? New homes offer open floor plans with 10’ ceilings, lighter, brighter rooms, generous windows, grand kitchens, home offices, and primary suites. Today’s finishes: quartz, granite, vinyl plank flooring, and stylish tile create fresh and appealing living spaces.

Reason #5: Community

New construction often happens in a planned community which means – well… everything is planned out. Bike paths, nature walkways, amenity centers, swimming pools with splash pads, workout gyms, weekly food trucks along with on-site event planners make for an all-inclusive lifestyle. People meeting people; kids making friends.

Reason #6: Options

New construction affords the possibility of buyers creating a house that works best for them. Do you want two living spaces? No worries. Do you need two home offices? Not a problem. Do you prefer a primary on the main with children’s bedrooms upstairs? Easy breezy. Looking for an extended covered patio? Yep, option 12a. So you have a sectional the size of HEB’s parking lot? Uh…I’ll let you talk to the sales counselor about that one.

Reason #7: Flexibility

Need to move immediately? Most builders have ready-to-move-in inventory homes from which to choose. Want to move in three months? Options abound. Desiring to select a lot and choose a floor plan? You got it.

Reason #8: Safety Plus Security

The rigors of conforming to current building standards can mean more than fifteen specific inspections. Electrical, plumbing, and structural standards from two decades ago may present hazardous conditions. To accentuate the contrast even more, many builders install Ring doorbells, security systems, home assistants, intelligent appliances, and thermostats, along with smart-phone-integrated living packages.

Reason #9: Me

Ivy, you said eight reasons and here we are at nine. I know. But I just had to add one more. I am one of the few Austin Certified New Home Co-Broker Specialists. Homebuilders live with two tensions: profitability and customer satisfaction. I’ve watched reputations deteriorate when companies choose profit over people. Some will reset their priorities by refocusing on a quality product. Others do not. Consequently, I frequently edit my list of acceptable/unacceptable builders.

Likewise, some companies may construct a quality house in one community only to throw up a substandard unit in a different neighborhood. For example, one of my new home buyers opted for a builder with a good track record. She then selected a new community Phase 1, project. Halfway into construction, we were sorely dismayed. The problem? One lone project manager had 45 houses in progress!

Because I sell so many new construction homes, I know what is going on and where to direct my buyers. If you have any questions, contact me. I am here for you.

Contact Ivy