Year-End Home Buying Opportunities: Best Deals on New Constructions in Arizona’s Top Cities

As we approach the close of 2023, a golden window of opportunity awaits prospective buyers! While not every region boasts the luxury of diverse construction choices, it is prudent for buyers to set their sights on areas where a myriad of innovative builds flourish, ensuring they secure the best possible value and deals.

Thriving Cities Leading the Construction Wave

In Arizona, several cities are experiencing a boom in new construction, providing buyers with a wealth of choices and opportunities. Here are the cities leading the charge:

• Buckeye
• Surprise
• Litchfield Park
• Queen Creek
• San Tan Valley
• Scottsdale
• Goodyear
• Glendale
• Mesa

Understanding Supply and Demand Dynamics

Supply and demand dynamics, the cornerstone of price fluctuations, apply just as significantly to new constructions. In the Greater Phoenix Metro area, robust competition among builders has resulted in a surplus supply. Coupled with reduced demand, this scenario paints a buyer-friendly landscape. Over the past year, most builders have significantly slashed their prices, making this moment the epitome of advantageous deals for savvy buyers.

Why Act Now?

In simple terms, as the year draws to a close, builders are eager to clear their existing inventory and bolster their end-of-year balance sheets because, fundamentally, they are running a business.

Approaching year-end, builders grow uneasy as unsold, ready-to-move-in homes become financial burdens. These properties weigh heavily as liabilities on their books, bleeding money monthly due to holding costs, taxes, utilities, and maintenance expenses like cleaners and pest control.

Builder Incentives and Profit Margins

The difference between builders and individuals selling pre-owned homes lies in the profit margin builders maintain. In the Greater Phoenix Metro area, most builders operate on a substantial profit margin of at least 20% for each home they sell. This healthy margin enables builders to reduce interest rates for buyers, extend generous credits, and offer significant price reductions, all of which are to the buyer's advantage.

Enticing Incentives on Offer

Below are some of the enticing incentives currently on offer from builders:

• Interest Rate Incentives: 4.50% - 5.50%, 30-year fixed rate at no cost to buyers.
• Closing Cost Incentives: $15,000 - $35,000 towards closing or rate buydown.
• Upgrade Incentives and Credits: $20,000 - $45,000 off options and upgrades.
• Discounts and Price Reductions: $20,000 as a flexible discount on the home price.

Recent End-of-Year Deals

While these examples illustrate some of the incentives promoted by builders, further negotiation incentives can be secured with our expert representation. Consider these recent end-of-year deals where our buyers reaped the benefits of special offers:

• Over $100k off Quick Move-In Home in Mesa, AZ

  • List Price: $734,000
  • Contract Price: $630,000

• Over $120k off Quick Move-In Home in Peoria, AZ

  • List Price: $987,000
  • Contract Price: $865,000 with $20,000 in concessions

• Over $50k off Quick Move-In Home in Queen Creek, AZ

  • List Price: $540,000
  • Contract Price: $490,000 with $20,000 in concessions

In this final quarter of the year, our buyers are enjoying average savings of $50,000, with an average concession of $15,000 and an average interest rate of 5.50%.

Best Deals in Prime Locations

The most exceptional deals for buyers presently abound in:

• Surprise
• Litchfield Park
• Queen Creek
• San Tan Valley
• Buckeye

Take Action Now

If you've been contemplating your next move, but concerns about interest rates or rising prices have given you pause, now might be the perfect moment to explore these options. The current market conditions offer a unique opportunity to secure substantial savings and favorable terms.

Contact Me

Should you wish to discuss your situation or have any inquiries, please do not hesitate to contact us. Our team is ready to provide expert guidance and help you navigate the market to find the best deals available.

For more insights and detailed guidance, schedule a complimentary planning and discovery call below!