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Do New Construction Homes Hold Their Value?

Will your new construction home hold its value down the line? Will it age like wine or rot away like bread? Those are some of the questions we will answer in this article.

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Construction Homes


A new house has a golden appeal. We don’t know what it is, but there is something to living in a new home for the first time–That special feeling that you are the first person to ever live in the house.

Unfortunately, the appeal doesn’t last forever. As time goes by, you’ll come to appreciate and treasure other qualities.

Will your new construction home hold its value down the line? Will it age like wine or rot away like bread? Those are some of the questions we will answer in this article.

Yes, new construction homes can hold their value. However, be smart about it. We’ll tell you everything you need to know about new construction houses and how they can retain their value.

Below are some of the pros and cons of construction homes.

What about the “existing” homes?

“Existing homes” refer to homes in the real estate market that have had several owners. You are not the first person to live in the house, and chances are, you won’t be the last.

Existing homes are cheaper compared to newly constructed homes.

No, we are not saying they are worth-less. It’s possible to find existing homes with more features and look way better than newly constructed homes.

Here is some advice: Newer doesn’t necessarily mean better. It’s up to you to sit down with your trusted real estate agent and try to find the best value for your money.

Pros of new construction homes

1. There is room for customization

Customization is probably the main reason why people decide to go for newly constructed homes.

We are all unique with different wants and desires. Despite our architects being geniuses, they can’t read the buyers’ minds and build houses that satisfy everyone’s architectural desires.

A construction home allows you to tweak even the smallest of details. You get to decide where the bulbs should be, how the kitchen counter should appear, and the overall layout of your living room. Don’t get us wrong. All these customizations are possible with “existing” homes. However, they are costly and time-consuming.

Are you an expressive design-oriented person? Then a newly constructed home is the best option for you. The last thing you’d ever want is to get stuck with a boring cookie-cutter home.

Click here to learn about the sorts of customizations you can find on new homes in Wedgewood Towns, part of the Whitchurch-Stouffville area.

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2. Availability of up-to-date facilities

Construction homes come with the latest facilities and features available in their era. Your new home will be compatible with the most recent appliances like air conditioners and heaters.

In addition to that, new homes tend to be more energy-efficient than existing homes. Chances are, your home will require less energy to keep warm during the winter and cool during the Summer.

How are newer homes more efficient than older homes? One thing that matters a lot is the window design and size.

Older homes tend to have fewer and smaller windows. Also, the window designs tend to be out of date. All these replacements will cost you a considerable amount of money.

3. Lower maintenance costs for the first couple of years

Unlike existing homes, newly constructed homes demand fewer repairs and renovations. Of course, this is only possible if the construction work is quality.

Just think of it. When moving into a newly constructed house, you’ll not have to worry about leaky roofs, broken pipes, faulty sockets, and ghosts—Everything is brand new and working as it’s supposed to be.

Besides the new stuff, you’ll also benefit from the builder’s warranty. Always ask and check to see if your builders offer warranty services.

For most home buyers, the full structure and external warranties are lifesavers, especially after spending hundreds of thousands purchasing the home.

Cons of new construction homes

Nothing is 100% perfect. Here are some of the disadvantages of buying new construction homes.

1. They are too personal for resale

People now fancy the idea of moving from one house to the other as they explore new towns and cities. If that’s you, then an overly customized home might be an issue during resale.

Most of the time, personalized homes are more expensive to re-style and re-decorate. Don’t be surprised when buyers turn down your “masterpiece of a house” because it’s too much for them to handle.

2. Hefty price tags

We don’t want to discourage you, but everything is expensive about newly constructed homes.

The price you are likely to come across on the builder’s website is usually the base price. There are still plenty of features and facilities to be added to the budget.

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You can indeed do without a lot of these upgrades. However, the house won’t be as appealing as you want it to be. After all, what’s the point of going through all that hustle of buying a newly constructed home only to end up with a lack-luster piece of property?

The bottom line is, newly constructed homes cost more money than existing homes. On average, a new construction home will cost you 20% more than its existing counterpart.

When does a new construction home hold its value?

Are you still interested in buying a new construction home?

Do you want to know how to make your new construction home an evergreen asset?

Below are some of the circumstances where your new construction home will hold its value.

If you live in the house for some time

A newly constructed home will hold its value if you live in it for a couple of years. We are talking 2 to 5 years after the date of purchase.

Why is that necessary?

First, you’ll be able to avoid capital gains tax if you decide to sell the house.

Second, newly constructed homes tend to be “overpriced” when compared to other houses around. However, after a few years, all the others will catch up, and its price will be the norm. You are future-proofed.

If it’s the first or last new construction home in the development

You have to be smart. Here is another trick to help you get the best deal when buying a new construction home.

Always go for the first homes in the development. Most of the time, the first newly constructed homes are much cheaper. The sellers want to compensate for the construction noises you’ll endure as they build other houses.

The other trick is to go for the last newly constructed homes in the development. By this time, the developers are usually begging to sell the last units (especially if the project took longer than expected).

All these deals will allow you to make a lot of profit when selling your house.

If the neighborhood is growing

Before buying a new construction home, check to see if the neighborhood is promising.

Are their new schools, restaurants, or new housing developments nearby? All these signs suggest that the area is about to receive a huge influx of people.


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