The real estate market continues to climb upward while interest rates fluctuate daily. The prices of houses might stabilize for a little while but they never fall, they always seem to be going up faster than our pay raises do. For a couple looking to purchase their first house, it is becoming harder to find affordable new homes. The average American is in some sort of debt. Mortgages may seem like a debt, but they are also an investment. However, the monthly mortgage payments need to be made and taking on a home that is not realistically affordable can cause some major financial hardships. When my husband and I first got married, we were looking for affordable new homes.
Home prices have consistently risen across the Grand Valley in the last five years, from a median price of $171,000 in January, 2015, to $260,000 in January, 2020, according to the Bray Real Estate Report. Land prices have also risen, as have both labor and materials for new home construction, so it should come to no surprise that new home prices have also risen dramatically.Source:
We quickly discovered that affordable new homes seemed to only exist in neighborhoods that we’d never consider or on the outskirts of town. Even looking at a new condo or townhouse seemed as if it was an impossibility. Soon, we were no longer looking for affordable new homes, but for quality homes that had a history. I wasn’t thrilled about
having a house that someone else had previously lived in, but it was the only affordable option we had. We bought a small house in a nice neighborhood and hope to only have to live in it for a few years until we are able to start to look for a new home again.
More younger couples and single individuals are finding themselves in the same situation. There are not a lot of affordable new homes to be found nowadays. Most new home prices seem to be holding steady and are catering towards the more financially stable homeowners. There are some builders that see a need to cater to first time homebuyers and younger individuals who are seeking a new house. Those builders may be focusing on building affordable new homes buy establishing new neighborhoods and developments. The houses may not be big and fancy, but they are new homes that people are actually able to afford and maintain. Perhaps some of the affordable new homes are townhomes or condos as well, which make excellent low maintenance properties.
Some of the affordable new homes may not be what you’ve always dreamed of owning, but it could be a wonderful beginning and an excellent stepping stone. Quite a few people have commented to me about the quality of these so-called affordable new homes. I’ve also heard comments about the quality of the expensive new homes as well. It is true – some things cannot ever be built like they used to. And perhaps if a hurricane came along, an older home would last longer than these new homes. Everything could simply be speculation or it could be factual. All I can say is that if you are looking for affordable new homes, be sure to do your homework and best of luck. If and when you do find it, make sure it is a step you are ready to take.