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In an unprecedented shift, new homes across the nation are now generally cheaper per square foot than existing homes. According to a new report from Zillow, new construction homes sold for $209.70 per square foot in May, while existing homes sold for $213.20 per square foot. This $3.50 difference marks the most significant discount in at least six years. This is a substantial shift from before the pandemic when new homes ranged from $15 to $22 more per square foot than existing homes.
Phoenix, Arizona: On a local level our city of Phoenix has emerged as a standout in this list, ranking #7 among the top metro areas with the greatest price per square foot difference between new and existing homes. In Phoenix, new builds are now $31 less per square foot than resale homes. This means that you can purchase a new home for less per square foot than a resale, an opportunity that has not been seen in recent history.
Why This Matters
This is excellent news for Phoenix area buyers. Not only are you benefiting from the incentives commonly offered by builders, but you’re also seeing significant savings on a square-foot basis both nationwide and in Phoenix. If value and affordability are your main drivers, your best bet is to go after a newly-built home. That’s where you’ll see the biggest savings.
Additionally, many builders are offering favorable mortgage terms, which can make new homes even more attractive. With a median sold price for new homes in the Phoenix area at around $742,000, the combination of lower cost per square foot and builder incentives makes new construction an appealing option for buyers looking for the best value.
As a real estate agent in the Phoenix-metro area, I can personally attest to the benefits of opting for new construction homes in the current market. The savings on a square-foot basis, combined with the modern amenities and customization options that new builds offer, make them a smart choice for many buyers. Plus, the builder incentives and favorable mortgage terms can further enhance the affordability of these homes.
In conclusion, if you’re in the market for a home in the Phoenix area, it’s worth exploring the options available with new construction. The current market dynamics favor new builds, offering both financial savings and the opportunity to own a brand-new home tailored to your preferences. Reach out to learn more about the available new homes in Phoenix and how you can take advantage of these unprecedented savings.
A great website to search for new homes for sale is New Homes | Search Home Builders and New Homes for Sale (NewHomeSource.com). However, I highly recommend visiting these sales offices with your own real estate agent. A good agent can help you ask the right questions and guide you through the entire process.
For more insights on the Phoenix real estate market and expert advice on buying and selling homes, visit AriZona Real Estate Insider! and stay updated with the latest trends and opportunities.
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