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Jason Hamilton

The Real Deal TM

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Buying a Home in 2024: New vs. Resale

The verdict is in, and the market is back.  Are you one of the millions of Americans who held off buying your new home in 2023 because of interest rates?

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The verdict is in, and the market is back.  Are you one of the millions of Americans who held off buying your new home in 2023 because of interest rates?  The recent drop (>7% since November) has flooded the market with new home buyers.  And while we are still nowhere near the historic low rates we saw in 2022, experts agree that 2024 is shaping up to be the best time to buy a new home in years.  At under 7%, interest rates are palatable, and home prices are down significantly from the inflated numbers we saw two years ago. 

The question now for many prospective buyers is this:  should I buy a resale home in an established neighborhood, or a new construction home from the builder?  Here are a few pros and cons of each to help you make your decision.

New Construction


I’ll start with new construction, as this segment of the housing market has been leading the way in sales in recent months.  In the greater Austin area, there are currently more than 15,000 new home permits issued and 4,000 new homes under construction.  And what’s not to love?  New builds are just that:  new.  New paint, new fixtures, trendy designs and modern floor plans give consumers a lot of what they want in a new home.  And with today’s prices, why not get exactly what you want in a new home?  To top it off, many builders will allow you to customize certain features of the home if you go under contract early enough in the construction process.  The main factor driving new home sales, though, is the attractive rate buy-downs and cash incentives currently being offered.  It is common in today’s market to find rates a full point lower than what you would be able to finance a resale home for and walk away with thousands of dollars of cash toward closing. 

With all of these perks, you may be thinking, why would anyone choose to buy a resale home?  Well, there are some downsides to new construction.  Builders have tight profit margins, so sales prices are often difficult to negotiate.  You’re more likely to receive concessions like upgrades or added features than to get a discount off the list price.  Immature landscaping, construction noise/dust, and not knowing who your neighbors will be are other factors to consider when looking in new neighborhoods. 


By comparison, resale homes have been slower to rebound but are starting to make a comeback.  Limited inventory and comparatively higher interest rates have made resale a slightly less popular choice in the early weeks of 2024.  So why choose a resale home?  There are plenty of compelling reasons!  Perhaps the most compelling of those reasons is that resale homes are typically found in established neighborhoods that feed into established schools.  This makes researching market trends and soliciting feedback from those who have lived in the community much easier.  Historical price trends make it easier to project what home values will be in the future and bring some peace of mind when making your decision about where to invest your money.  Additionally, resale homes in today’s market offer more room for negotiation and on average are priced below their new home counterparts. 

Whichever you choose, now is a fantastic time to purchase your next home!  As a local market expert, I would be thrilled to discuss the options with you as you begin your home-buying journey.  Contact me today to set up a free consultation!

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