NewsMacroOut-of-Town Buyers Dominate New-Home Shopping, With Florida Metros Leading the Nation: Realtor.com Report

Out-of-Town Buyers Dominate New-Home Shopping, With Florida Metros Leading the Nation: Realtor.com Report

Author: Fox Business Markets·

Key Takeaways

  • Lakeland, Florida led the nation with out-of-town shoppers accounting for more than 83% of new-construction listing views in the second quarter, followed by Cape Coral, Port St. Lucie, North Port and Durham, North Carolina.
  • Nationwide, 67.2% of new-construction listing views came from out-of-metro shoppers in the second quarter, compared with 65.4% for existing-home listings.
  • Lakeland's median new-construction listing price was $315,821 in the second quarter, versus $1,946,685 in Miami, and many Lakeland shoppers browsed from Miami, Orlando and Tampa.
  • Builders are attracting buyers with incentives including closing-cost assistance and mortgage-rate buy-downs as they compete amid slightly higher inventory.
  • The national median asking price for a newly built home was $450,256 in the second quarter, down 0.1% from a year earlier.
Out-of-Town Buyers Dominate New-Home Shopping, With Florida Metros Leading the Nation: Realtor.com Report

Florida dominated a new ranking of markets attracting out-of-town shoppers for newly built homes, with outside shoppers generating more than 80% of new-construction views in several of the state's metro areas, according to a new Realtor.com report.

Lakeland led the nation, with out-of-town shoppers accounting for more than 83% of new-construction views during the second quarter. It was followed by Cape Coral at 82.4%, Port St. Lucie at 80.9% and North Port at 80.5%. Durham, North Carolina, rounded out the top five at 80.2%.

Nationwide, 67.2% of views of new-construction listings came from out-of-metro shoppers, compared with 65.4% for existing-home listings.

Deltona, Florida; Charleston and Greenville, South Carolina; Stockton, California; and Augusta, Georgia, also drew strong interest from out-of-market shoppers, the report found.

"The new builds are competitively priced in these metros, so out-of-metro buyers who maybe did not necessarily have new construction in mind find lots of new builds that fall into their price filters," Realtor.com senior economist Joel Berner said in a statement.

Affordability and Sun Belt lifestyle are among the major factors driving out-of-market interest in those areas, according to Berner.

The difference in metro-wide median new-construction listing prices can be substantial. Lakeland's median new-construction listing price was $315,821 in the second quarter, compared with $1,946,685 in Miami. Many shoppers viewing homes in Lakeland came from Miami, Orlando and Tampa, the report found. Cape Coral, meanwhile, attracted shoppers browsing from Miami, New York City and Chicago.

Brian Stephens, a real estate agent and team leader with eXp Realty in Lakeland, said builders are also attracting buyers with closing-cost assistance and mortgage-rate buy-downs.

"They have slightly more inventory, and they offer to pay for the buyers' closing costs and even buy the interest rate down," Stephens told Realtor.com. "Why purchase a resale when you can purchase a new home and get a warranty and everything is brand-new?"

Those incentives are becoming increasingly important as builders compete for buyers nationwide. Nationally, the median asking price for a newly built home was $450,256 during the second quarter, down 0.1% from a year earlier, according to Realtor.com. The pattern highlighted in the report also illustrates a broader shift in how buyers search: with remote browsing of listings now standard, viewing data from outside a metro has become a widely watched indicator of where demand may be headed before sales contracts are signed. Future quarterly reports from Realtor.com will show whether the out-of-town share of new-construction views continues to run ahead of the existing-home share, as it did in the second quarter.