new home construction

NAR economist Yun predicts home sales will begin to rise next year – by 13.5% compared to 2023, and the median home price will reach $389,500 – an increase of 0.9% from this year. “Metro markets in southern states will likely outperform others due to faster job increases, while markets in the Midwest will experience gains from being in the most affordable region.”

Yun expects rent prices to calm down further in 2024, which will hold down the consumer price index. He predicts foreclosure rates will stay at historically low levels in 2024, comprising less than 1% of all mortgages.

Yun forecasts the U.S. GDP will grow by 1.5%, avoiding a recession, with net new job additions slowing to 1.7 million in 2024 compared to 2.7 million in 2023, and 4.8 million in 2022. After eclipsing 8% in late 2023, he expects the 30-year fixed mortgage rate to average 6.3% and for the Fed to cut rates four times – calming inflationary conditions – in response to slower economic activity.

Yun also foresees 1.48 million housing starts in 2024, including 1.04 million single-family and 440,000 multifamily.

Florida is home to over 22+ million people—a number that is growing every day. In fact, Florida is the fastest-growing state in the country, adding an average of 1,000 people per day. These new residents are congregated in just a handful of counties. According to an analysis by the Tampa Bay Times, a third of Florida’s new residents wound up in just five counties: Orange, Hillsborough, Lee, Polk, and Palm Beach. These five counties are all located in the state’s southeastern region, known for its warm weather and beaches.

Florida’s growth is largely fueled by migration. Over the last two years, 616,000 new residents have come to Florida from other parts of the country, and 175,000 from other countries. In fact, without migration, Florida would not have grown at all. Its 567,881 deaths exceeded its 478,834 births. And according to projections, by 2030 Florida will have more than 25 million residents.

Florida’s statistics will be greatly influenced by available inventory for sale. The South Florida real estate market still has a significant shortfall or inventory relative the the migration to the area and demand for housing.  Southeast Florida’s housing market is poised for a rebound in sales and sustained price appreciation in 2024.

Filed under: 2024 real estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, new home construction, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, South Florida Real Estate by Kim Bregman
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Because the builder’s agent’s job is to convince you to buy only their homes at the highest price. Your Exclusive Buyer Agent’s job is to even the odds and negotiate for the lowest price and best terms for YOU!

If you’re building what you buy, you might think, “Why would I need an agent?” However, new construction is a complicated and expensive process. The advantages are many; aside from the obvious ones. The fact that having buyer agent representation is often FREE cannot be repeated often enough. So too, should the misconception that not using a buyer’s agent will save money be constantly repeated – that simply doesn’t happen.

A seasoned agent with experience in new home construction can give you invaluable insight during the process. Whether they’ve done business with those particular builders, or are aware of other comparable communities in the area, they can provide a wider context to your transaction. They might have an existing relationship with your builder, easing any tensions that might arise.

Remember that that site agent represents the builder/developer. Most real estate agents are sub-agents of the Seller or Transactional agent. In neither case do they have a fiduciary responsibility to the Buyer.

The site agent is an employee of the builder and is obligated  to represent the best interests of the builder, not the homebuyer. They are expected to work to secure the builder the best deal.

The further you get into the home shopping process, the more challenging it becomes to bring in an agent. In fact, if you’ve already registered with a community, it might be too late.

Benefits of Using an Exclusive Buyer Agent for New Home Construction:

• Compare and evaluate builders’ reputations and history of their construction quality and service.
• Help you compare and evaluate advantages and disadvantages of new construction homes vs. resale homes.
• Provide information about the community.
• Help buyer with evaluation and selection of a building lot and options. Lot location and certain options have a very real bearing on resale value.
• Help buyer evaluate which options should be done by the developer during construction and which are more affordable to be done by an outside vendor post closing.
• Truly negotiate on behalf of the buyer. Many builders are offering “free” options and upgrades, but some are also making additional price concessions.
• Review the Agreement of Sale (PA) prior to buyer signing. This is not a legal review (only an attorney can do that), but an experienced agent will be able to spot terms and conditions that are atypical and of potential concern to the buyer. The agent may then be able to negotiate terms and conditions that are more favorable to the buyer but still acceptable to the builder. Keep in mind most new construction contracts are written by attorneys that represent the builder and these contracts are therefore heavily weighted in favor of the builder.
• Recommend a real estate attorney for final contract, title commitment and to hold your escrow funds.
• A buyer’s agent serves as an extra set of ears as a witness at court or arbitration– When the builders sales representative is familiar with all rules, features and prices and it’s all new to buyer – it is good to have experienced person on buyer’s side listening with buyer and taking notes, a lot of information is verbalized in short period of time.
• Attend the signing of the Agreement of Sale
• Assist with the buyer’s financing and review financing paperwork. This is especially important if the builder is tying “free” options and upgrades to the use of a builder-affiliated lender.
• Check on the property during construction and keep a photo record at different stages.
• Assist in options selections to optimize budget and maximize resale.
• Be your leverage with the builder as problems arise during construction.
• Keep everything in writing– Sometimes even the very nicest builder makes verbal promises that later become a point of contention. An experienced buyer’s agent is conditioned and trained to “put it in writing” even though at the time it doesn’t seem necessary.
• Arrange for a final inspection with a license building inspector and generate a “punch list” to be completed before final closing.
• Document and help resolve any issues with construction, financing, title, etc. throughout the process.
• Attend a pre-settlement walkthrough with the buyer to make sure that all items are satisfactorily completed or that a proper punch list is established to assure completion after settlement.
• Obtain and review a preliminary HUD-1 settlement statement to be sure it is accurate and advise the buyer of the amount needed for settlement.
• Assist buyer with utilities, security and HOA requirements, decorators, service professionals, schools, et. al.
• Attend settlement with the buyer.
• A buyer’s agent will be there even after the home closes. It is routine for issues to arise during the first year of a new home. Site agents tend to forget a buyer’s name after the contract is signed.
• NO ADDITIONAL COST TO YOU!

Read My Reviews from New Home Construction Clients!

Filed under: Blog, Boca Raton real estate, closing costs, contracts, Down Sizing, Exclusive Buyer Agency, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, home Inspections, Home Maintenance, Homebuyer Advice, International Home Buyers, Jupiter FL Gated Communities, Mortgage Information, new home construction, Real Estate, Real Estate Investment, Relocation, Retirement, second home, South Florida Real Estate, vacation home by Kim Bregman
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