The Truth About Newly Built Homes and Today’s Williamsburg Market

You may have seen the headlines about new homes hitting the market at the highest levels since 2009. If you're anything like most buyers, this can trigger a sense of déjà vu. The mention of 2009 may bring memories of the housing crash and fears of another market crash.

But before panic sets in, let’s take a step back and examine what the data really shows — especially for the Williamsburg market — and why we’re not headed for the same downturn that we experienced in the late 2000s.

Why This Isn’t Like 2008

While it’s true that the number of new homes on the market has reached levels not seen since 2009, it’s important to understand that this doesn't signal the same type of market conditions as the crash we all remember. What happened in 2008 was the result of an oversupply of homes, not the level we're currently seeing. In fact, in 2009, construction was already slowing, which means we are not in the same place we were in during the pre-crash years.

When you look at the data from 2007-2008, it becomes clear that the overbuilding — which led to the housing crash — was occurring before 2009. Fast forward to today, and we're seeing new home listings rise, but they're not coming from an oversupply. Instead, builders are responding to a decade-long shortage of housing.

Builders Have Actually Underbuilt for Over a Decade

Following the 2008 crash, builders significantly reduced production, which created an ongoing housing shortage. That gap in construction has lasted more than 10 years, and we are only now seeing builders ramp up their efforts to catch up.

Locally in Williamsburg, this shortage is even more pronounced. As homebuyers continue to move into the area, the demand for new homes is only increasing. There is a real need for new construction to meet the demands of a growing population and those relocating to Williamsburg for work or leisure. So, the homes coming on the market today are helping to address that deficit.

Nationally, data shows that builders are still working to meet demand, and they are finally getting back to a more normal level of construction (see graphs showing national trends). According to First American’s Chief Economist, Odeta Kushi, this increase in construction is good news for homebuyers:

This means more homes on the market and more options for home buyers, which is good news for a housing market that has been underbuilt for over a decade.

This increase in new homes coming to market is especially important for buyers in Williamsburg, where inventory has traditionally been tight. The rise in new home construction brings more variety and better options to a competitive market.

What Does This Mean for Williamsburg Buyers?

As you begin your home search in Williamsburg, you’ll likely see an increase in the number of newly built homes. Whether you’re looking for a move-in-ready property or a custom-built option, there are now more opportunities than ever before. The increased supply of new homes also means you have more options, which is a refreshing shift from the past few years when competition was stiff, and inventory was limited.

Additionally, the increase in new construction can bring down the price pressure in other areas of the market. With more new homes available, existing homes may become more reasonably priced, which creates a healthier and more balanced market overall.

Bottom Line

For Williamsburg buyers, the recent surge in newly built homes is a sign of progress, not a warning. Builders are addressing years of underbuilding and responding to the growing demand for homes. If you’ve been considering buying a home in Williamsburg, now is a great time to explore what’s on the market and find a newly built home that fits your needs.

Have questions about newly built homes or want to explore the available properties in Williamsburg? Let’s talk about how the current market trends can work for you!