If you are a buyer looking to purchase a home in the next few months, here’s some good news: the supply of homes for sale has grown in a lot of markets this year . And that’s not just existing and previously-owned homes. It’s true for newly built homes too.
Check out the graph below: Data from Realtor.com shows that in Southern California, there are more active listings now compared to the same time last year. As of September 2024, there were 5,455 total listings in OC, which was 66 more than the previous month. And that number is only expected to rise with the change in mortgage rates. That’s a significant improvement, as it gives you far more options for your move than you would’ve had just a year ago.
This data is a mix of both new builds and existing homes, which have their own benefits and challenges. So, how do you decide which route to go? With so many different home types and neighborhoods to choose from, where to even start? The choice is yours – you just need to figure out what’s most important to you.
Perks of a Newly Built Home
Here are some benefits of buying a newly built home:
- New appliances and materials – One of the most obvious benefits of a newly-built home is the luxury of a new space without the wear and tear of an older home. These homes are turn-key ready and require little upgrades and renovations before you move in.
- Energy-efficient options – A lot of newer builds are designed with energy efficiency in mind. From solar panels to electric car charging ports, newer homes benefit from having these features already installed.
- Minimize the need for repairs and benefit from builder warranties – With newer homes, you are less likely to need to complete any repairs for wear and tear compared to an older home. If you are looking for a turn-key home that you can move into right away, a newer build might be for you.
- Builder concessions – In today’s market, a lot of builders are focusing on selling their current inventory before they add more homes to their mix. And many of them are offering concessions and are more willing to negotiate to make a sale happen. Your advisor will be able to negotiate with the builders to get you the best deal possible.
That, coupled with the fact builders are primarily building smaller, more affordable homes, has led to one other potential perk. The median price for a newly built home in today’s market is actually lower than the median price of an existing home. In the article “I Bought a New-Construciton Home, and It Saved Me Nearly $60K,” writer Julie Taylor reports that new builds can often be cheaper than older homes.
“The median sales price of new houses built and sold nationwide in May 2024 was $417,400, according to the U.S. Census Bureau, and the median existing single-family home price was $424,500, according to the National Association of Realtors®. That’s a $7,100 difference.”
If you’re interested in seeing what builders nearby have to offer, lean on your real estate agent. Their knowledge of local builders, new communities, and builder contracts will be important in this process of negotiating the best deal for you.
New Construction Homes in Orange County
- Great Park Neighborhoods in Irvine
- Palm Court in Anaheim
- The Jessup in Tustin
- Viewpoint at Saddle Crest in Silverado
Perks of an Existing Home
Now, let’s compare that to the benefits of buying an existing home:
- Join an established neighborhood – Especially in SoCal, there are some great historical neighborhoods filled with charm that you can’t get in every neighborhood.
- Wider variety of floorplans and styles – Home styles change over time. And if you are looking for a unique kind of floor plan, then an existing home may be for you. In addition, many existing homes include additions like ADUs that can be used to earn additional income.
- Lived-in charm – You can’t beat the cozy charm of an older home. From intricate details to picturesque front yards, older homes have a personality to them. If you aren’t afraid of putting in a little effort to remodel, purchasing an older home could be the perfect opportunity to craft your dream space.
- Privacy and curb appeal – Many older homes sit on larger plots of land, which can mean large front and backyards. If you are looking for a home where you can unwind, cultivate a garden, or relax outside after a long day, consider looking at an existing home.
In addition to these lifestyle benefits, there’s strategic value to buying an existing home, too. Remember, you can always make upgrades to an existing home down the road. This gives you the best of both worlds: you’ll get the charm and the neighborhood, and over time, you can still add those on-trend elements you may see in a brand-new home. And if you do, you’ll likely increase the home’s value too once you are ready to sell.
Historic Neighborhoods in Orange County
- Old Town Orange in Orange
- Floral Park, Santa Ana
- North Tustin, Tustin
Want to see what’s available? Your real estate agent can show you what homes are for sale in your desired neighborhood.
