Why are they always building new houses when there are so many up for sale?

Question

I think people are biting off more than they can chew getting thses new homes, there are alot of nice empty homes, its better than going bankrupt later on down the road.

Answer 1

There is definitly a lot of logic in what you say. One of the benefits of an older home, is that having been standing for more than 10years, the foundation has settled. Also, construction was not as quick, so often the structures are better built. New homes offer the American dream appeal, which is sold to people left and right even when they can't afford it. I know when I bought my home I was told I could afford more than I knew my budget would allow. I stuck to my view of things & I got what I wanted and within my budget.

One thing I want to add is that I bought my home using a downpayment assistance program for first time homeowners. Anyone in this situation may do well to look at this website:
http://www.americandreamdownpaymentassistance.com/

Answer 2

When you move into a brand new house, there is no upkeep, because everything is under warranty, so even if something breaks, you don't have to pay for it. With an older house you don't get any warranties, and depending on how old the house is there's almost always something that needs to be changed, fixed or updated. Also with a brand new house you get to pick all the colors styles and carpets, with an older house you either have to like with what's there or make costly renovations.

That's why most people that i talk to would rather have a new house. I on the other hand, prefer the character of an older house.

Answer 3

In my area most of the time it costs less to move into a new home than a used one. A new home requires very little downpayment because the builder wants it to sell fast. Some are even "Zero move-in costs" but used homes require downpayments and closing costs, etc.