Smart Time to Consider New Construction

Why Middle Tennessee Buyers Should Be Looking Hard at New Construction in November and December

As mortgage rates trend downward, today’s buyers in Davidson and Williamson Counties are finding that the most negotiable opportunities may not be among existing homes—but in new construction.

Existing homeowners are sitting tight

For many current owners, there’s little motivation to move. They’re sitting on substantial equity and historically low mortgage rates locked in during the pandemic. According to National Association of REALTORS® Chief Economist Lawrence Yun, “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth.”

That dynamic is clearly visible in Middle Tennessee. Sellers who aren’t compelled to move for personal reasons are unlikely to offer major discounts. The combination of strong equity and low-rate loans has created what economists call the lock-in effect. Homeowners are staying put—and that limits buyer negotiating power in the resale market.

Builder inventory tells a different story

The data for new construction tells the opposite.

• Back in September 2021, Davidson and Williamson Counties had 629 new-construction homes available.
• This fall, there are 1,550—almost three times as many.
• Pending sales are down, and months of supply have increased from 2 months in 2021, to 5.1 months last year, and now 6.2 months.
• Just in the past year, new-construction inventory rose 14.6 %, while sold and pending numbers both declined.

More homes. Slower absorption. More leverage for buyers.

Builders are motivated to deal

Nationwide, builders are competing hard for attention. The National Association of Home Builders (NAHB) reports that in June, 37 % of home builders cut prices—the highest share in three years—while 62 % offered financial incentives. These include closing-cost assistance, rate buydowns, and upgrades to get buyers to the finish line. That’s a very different posture from existing-home sellers who often can afford to wait for their ideal offer.

How buyers can use this to their advantage

For buyers, this combination of high inventory and builder motivation opens real opportunity. A skilled real estate agent can:

• Negotiate not just on price, but on lifestyle value: features that add daily enjoyment, like granite or quartz countertops, appliance packages, lighting, or outdoor upgrades.
• Compare incentives across different communities to pinpoint which builders are most flexible.

One of my current clients is negotiating a fence package right now as part of a new-construction deal. Motivated builders are willing to sweeten the terms.

Bottom line

Existing homes remain a solid part of the market, but they come with less room to negotiate in current conditions. New construction, by contrast, offers selection, builder incentives, and flexibility—especially when inventory is high. For Middle Tennessee buyers, this is a window where strategy and timing matter. With the right representation, you can convert builder competition into lasting value for your next home.