As the share of new listings sits at an all-time low, homebuyers are turning to new construction at an accelerated rate. According to Redfin, newly built homes made up nearly one-third (31.4%) of U.S. single-family homes on the market in the second quarter, the highest share seen in any second quarter on record. The share of new builds in the second quarter of 2023 is down from a near-record-high of 33.6% the previous quarter, but that slight decline follows a normal seasonal pattern.
Newly built homes made up more than half (52%) of all single-family homes for sale in El Paso, Texas, 46% of the market share in Omaha, Neb., and 42.1% in Raleigh, N.C.
“Builders are still building but homeowners aren’t selling, so new construction is the only option for many buyers,” said Shauna Pendleton, a Redfin Premier agent in Boise, ID, where new homes made up nearly 40% of single-family inventory in the second quarter. “A lot of buyers want to secure a home now because they’re worried prices are going to go back up, and new construction is more plentiful with perks that are hard to pass up. One builder is doing a promotion where buyers get anywhere from $15,000 to $25,000 worth of concessions. It was supposed to end in June, but they extended it through July, and now they’re extending it through August. That money can cover all of a buyer’s appliances with money left over for a mortgage-rate buydown.”