Existing Home Definition:Existing home sales is an economic indicator released by the National Association of Realtors. The data reflect the number of homes that have previously been constructed (and therefore accounted for by the new home sales indicator) and are now being resold.
Fargo ND, No one can really predict the future but my educated guess is that new construction is about to take a butt kicking Not just here in Fargo,ND but everywhere in the US. New tariffs are set to intensify already soaring construction prices, have a ripple effect across real estate industry. U.S. builders say Trump's tariffs are adding $9,000 to new home prices, and that's not all. Higher lumber costs, labor shortages and growing regulations are holding U.S. builders back as they try to ramp up construction to meet the huge demand for housing.
All this uncertainty is great for existing home owners who will start to see their property values go up faster as the price of a new home goes up quickly. Pricing many buyers out of the new construction game for the foreseeable future.
Why even consider buying an existing one? A big one is cost. In similar markets to Fargo Moorhead, new homes typically cost more than existing ones, and depending on where you live, the difference can be substantial. No new home premium. In most markets, new homes are more expensive simply because they’re new. Call it the “new home premium”. It’s the same reason why people will pay more for a new car than a used one, or anything else that’s brand new. The problem is, once you’re in the home for a year or two, it’s not new anymore!
Some new home buyers find themselves in a quandary if they purchased a new home in a large subdivision where new construction is ongoing. If they have to sell their home while new units are still being offered for sale by the builder, they’ll have that to compete with. Except that the home they’re selling – which is no longer new – is now an existing unit in competition with new ones. Guess which homes usually win that contest?
An existing neighborhood “personality” is known. Existing neighborhoods develop something like a personality. We hear terms like “kid friendly”, “close knit”, “active” and “peaceful” used to describe existing neighborhoods. If those descriptions are of a positive nature, they tend to enhance the desirability and resale value of the homes that are in it.
Which home do you think is the better buy, new or existing? Do you
have any stories you can relate from your experience with either?
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