In March 2022, sales of existing U.S. homes dropped by 2.7%, reaching their lowest level in two years. The housing boom finally looks to be slowing, but at the same time house prices are rising.
The median house price jumped by 15% to $375,300. All this uncertainty might be making you wonder – is it better to buy a new or used home?
Both choices come with their pros and cons. But if you’re thinking about relocating, it’s a question that’s well worth considering. Let’s take a closer look and see which is the right choice for you.
Buying a New Home
When considering whether to buy a new home or a used home, the cost will probably be your first consideration. It may seem that building or buying a new home would be more expensive. And while that’s usually true, it might not be as big a gap as you think.
Even if it costs a little more, there are other pros to consider. You don’t get someone else’s idea of luxury real estate, you get exactly what you want. You can usually customize your home to suit your needs and style.
A new construction home also comes with lower maintenance costs. Everything is brand new, so major renovations should be years down the line. They will also be built to the latest eco-friendly standards, lowering your utility bills.
The final pro is that you’ll probably have warranties on parts of your home.
The cons? It’ll take a while for the landscaping to bed in and mature. That means your plot will look a little barren for the first few years.
Also, you’ll usually be part of an HOA, unless you build it yourself from scratch. That can be a pro, but it also limits the freedom you have over your home.
Buying a Used Home
If you’re looking for character, there’s only one winner in the battle of new home vs used home.
A new home simply can’t replicate the charm and history of an older home. There may be beautiful original features and mature planting that you can enjoy right away.
Plus, older homes are in well-established neighborhoods. With a new home, you may find yourself out on a limb for a while.
The older home has already been built so you won’t need to wait for construction. This could mean less disruption for the family.
But the cons? You’ll often find that a used home needs major maintenance. Whether it’s structural work on a new HVAC system, there’s usually something nearing the end of its useful life in any older home.
The Verdict: Is It Better to Buy a New or Used Home?
Is it better to buy a new or used home? The answer is, it depends.
Whether you buy a construction home vs resale depends on whether a low-maintenance home is important to you. If you want a turnkey place you won’t need to work on, a new home wins hands down. If you’re looking for character in an established neighborhood, a used home is the way to go.
We hope you’ve enjoyed this discussion of different types of housing! Head over to our Household and Real Estate section for more helpful hints and tips today!