According to data from Redfin, new construction now accounts for 25.7 percent of single-family homes now on the market. Single-family starts were up 41 percent in March compared to 2020 while existing homes listed for sale dropped by nearly 28 percent during the same time period.
While purchasing new construction eliminates the worry of a bidding war, many developers are now using waiting lists due to the high demand.
Another downside is the rapid increase in the price of building materials, most notably lumber, which are adding considerable costs to the price of a new home.
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