It’s been frustrating for homebuyers lately.
Not only have home values risen, but many buyers are also facing sticker shock when they see what the mortgage payment will be.
It’s hard to overcome that feeling.
In response, many buyers are turning to new builds. Why?
Because often, you’re not just buying a house — you’re buying a mortgage payment you can live with.
Builders understand this and have adjusted to meet that need.
Over the past five years, the percentage of new home sales compared to existing home sales in the U.S. has shifted significantly.
Traditionally, new homes made up about 10% of the market, but that’s been changing.
In 2024, existing home sales hit their lowest point since 1995, largely due to high mortgage rates and limited inventory.
As a result, new home sales now account for roughly 30% of all home sales.
Could lower mortgage payments be the reason?
If you’re selling your home, take a cue from builders.
Many sellers aren’t thinking like a business and are missing an opportunity to meet the needs of today’s buyers.
It’s natural to feel emotionally attached to your home.
It might be filled with memories like family gatherings and holidays.
But buyers aren’t purchasing those memories—they’re buying a place to live with a payment they can afford.
Builders, on the other hand, aren’t emotional about it. Their priority is to sell homes, and they’ve discovered that offering lower mortgage payments is a highly effective way to do that.
If you’re planning to sell your home, think about how you can help buyers with their payments.
Offering incentives, such as paying for a 2-1 buydown, can make a significant difference.
While this might not lower the payment as much as a builder’s incentive, it can still make your home much more competitive in today’s market.
If you are thinking of buying or selling, please, give me a call so we can take a look at what options you have to make that dream come true!
Mary Cockburn
505-639-2090
MaryCockburn.Realtor@gmail.com
Realty One of New Mexico
8500 Menaul Blvd, Ste A-240
Albuquerque, NM 87112
