People Want Cheap Houses for Sale in Longmont Colorado – And Builders Are Responding
Looking for cheap houses for sale in Longmont Colorado? In the market right now, there are two main challenges impacting buyers: mortgage rates that are higher than they’ve been the past couple of years, and rising home prices caused by low inventory. To overcome those challenges, many people are looking for less expensive homes. And with new build homes making up a historically large percentage of available homes, that search often includes brand new homes.
People Are Spending Less on New Build Homes
The graph below uses the latest information from the Census to show, in June, more of the new build home sales in this country were in lower price ranges than in 2022:Last year, only 58% of newly built home sales were less than $500,000. This June, that number was up to 65%. This means more people are buying less expensive new build homes right now while affordability remains a challenge.
Cheap Homes for Sale Longmont Colorado – Builders Are Offering Lower-Cost Options
Builders have picked up on this trend and are reacting accordingly. George Ratiu, Chief Economist at Keeping Current Matters, explains:
“Builders are also responding to this shift by bringing slightly smaller homes to market in an effort to meet lower price points . . .”
I have noticed personally that a lot more builders in the Longmont area are leaving out basements. Some are not even including them as an option.
New data from the Census further confirms this pattern – it shows the median sales price of new build homes in Longmont has dipped down in recent months (see graph below):And as Mikaela Arroyo, Director of the New Home Trends Institute at John Burns Real Estate Consulting, says, the builders who are most responsive to this trend are forming pathways to homeownership:
“. . . it is creating opportunities for people to be able to afford an entry-level home in an area. . . . if you get that size down, that automatically will make it a more affordable home. The [builders] that are decreasing [size] the most are probably the ones that try to build more of an affordable product.”
How an Agent Can Help
Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed. If you’re hoping to buy a home soon in Longmont, partner with a local real estate agent like me to find out what’s available in your area. I can help you look at new build homes in Longmont and nearby.
If you’re having a hard time finding a home you like in your budget, let’s connect. You need a real estate professional who knows all about the latest inventory in our area, including homes still under construction or just built. That way you have an expert on your side who can provide information on builder reputations, builder contracts and negotiations, and more to help you with the homebuying process.