As foreclosed houses continue to add downward pressure of the new homes market, a recent report indicates that the builders of these new homes may have a slight edge over the competition, HousingWire reports.
Builders have started taking the "newer is better" stance by offering homes built with the latest materials, making them more technologically advanced and far more efficient, says the news source.
"Builders have always segmented themselves from existing homes," says National Association of Home Builders chief economist David Crowe, according to HousingWire. "But because foreclosures are now big competition and cheap competition, they (builders) are ramping up that distinguishing factor."
Some of the advances builders are able to offer include top of the line appliances and advanced heating and cooling systems which make the prospect of owning a home much more affordable by cutting down on monthly utility costs.
However, the news source indicated that with distressed properties offering bargain deals throughout many areas of the country, a number of entry-level homebuyers continue to opt for this option as they can be paired with affordable mortgage rates.
Meanwhile, to offset the affordability offered from foreclosed houses, a number of home builders are agreeing to cover part, if not all, of closing costs and financing for buyers who purchase newly build properties.