An individual looking to buy a home in Charlotte may have their heart set on a new property, but it could take a little bit of extra work with their real estate agent to make it happen.
Approximately 41 percent of Americans would rather purchase a new home than an existing property if they were the same price, according to a report conducted by Harris Poll for Trulia. A total of 21 percent noted that they would really want a new property, while another 38 percent were not set on this.
Nearly 60 percent of those polled explained that they want a new property due to the ability to have more modern features, the report showed. This included items such as an island in the kitchen, larger closets and even an open floor plan. More than 55 percent said that they would be able to better customize their property this way, and 55 percent felt that it would allow them to save money when it came to repairs needed around the property.
“Twice as many people prefer newly built homes to existing homes, but barriers often stand in the way of buying a new home,” said Jed Kolko, chief economist at Trulia. “Most people who say they strongly prefer a new home aren’t willing to pay the premium, and many regions of the country have little single-family construction. Still, as the housing market recovers, new homes will be a growing share of the national market.”
Existing-home sales essentially level in March
While many people may be considering making a new home purchase, they may be waiting on the sidelines when it comes to purchasing an existing property due to their preference. According to a report from the National Association of Realtors, existing-home sales reached a rate of 4.59 million in March, slightly lower than April’s 4.6 million units. The level was also 7.5 percent lower than the same month in 2013, when it was 4.96 million.
“There really should be stronger levels of home sales given our population growth,” said Lawrence Yun, chief economist at NAR. “In contrast, price growth is rising faster than historical norms because of inventory shortages.”
The last time this measurement fell to this level was in July 2012, the report showed. While the market may be muted for the moment, there could be reason for these sales to pick up as the year continues.
“With ongoing job creation and some weather delayed shopping activity, home sales should pick up, especially if inventory continues to improve and mortgage interest rates rise only modestly,” said Yun.
Even with the slow home sales level, price gains continued during the month. The report noted that the median price for existing-home sales improved to $198,500, nearly 8 percent higher than the same point in 2013.
One in 10 sales during the month were foreclosures, while another 4 percent were considered short sales, the report added.