True to its name, Collegeville is best known as the home of the historic Ursinus College. This Philadelphia suburb, located in Montgomery County on the western side of Perkiomen Creek, combines small town living with big city amenities. Its proximity to excellent schools, a diverse selection of bars and pubs, and several software and pharmaceutical companies make it a coveted location among homebuyers from various backgrounds. The borough also sits along Route 422, a burgeoning growth corridor with several shopping centers and one of the most rapidly growing commercial areas in Montgomery County.
Given these developments and the borough’s history as a college town, much of its 1.6-square-mile area has been dedicated to housing, with developments on the horizon for the remaining parcels of buildable land. Based on this, prospective homebuyers and real estate investors can expect lots of new construction in Collegeville, PA.
Investing early in residential projects has a lot of practical and financial upside, but it is not a decision that should be made hastily. Read on to learn more about newly constructed properties in Collegeville, PA, with insights on the local real estate market and the benefits of investing in new build homes.
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REAL ESTATE MARKET GROWTH IN COLLEGEVILLE, PA
Collegeville’s real estate market has experienced substantial growth in recent years. According to Redfin, median home sale prices went from just above $319,000 in April 2019 to $512,500 in April 2024, a 61% increase. The local market is highly competitive, with homes going pending after an average of 9 days. Particularly desirable properties move even faster and can go pending in as few as 3 days
A high demand for homes – and by extension, new construction in Collegeville, PA – is driven by local and out-of-state buyers alike. The borough receives a lot of inbound interest from major metropolitan areas such as New York, Washington, D.C., and San Francisco. Constructions and redevelopments have thus ramped up to supply new listings and help maintain the dynamic equilibrium of this steadily growing real estate market.
WHY NEW CONSTRUCTION HOMES IN COLLEGEVILLE, PA ARE A GOOD INVESTMENT
Buying a new construction home pays off in the long run and has immediate benefits if you intend to occupy the property. Several newly built residences in Collegeville are situated in desirable locations with sprawling, verdant surroundings such as along Greenwood Avenue, Heebner Road, and Wartman Road. Well-planned neighborhoods like Castlecove Village also develop their communities in a way that accommodates future growth and increases property value over time.
The houses themselves have several advantages over older properties, mainly in terms of customization, sustainability, and maintenance. They may have higher upfront costs than pre-owned properties, but savvy buyers know the long-term financial benefits of new builds, many of which even come with buyer’s incentives.
Let’s discuss each of these advantages in more detail.
- New construction homes may be customizable
Getting into contract early on a new build can give the buyer an opportunity to make aesthetic and functional decisions on the structure. You can customize many aspects of the home’s interior – fixtures, finishes, color scheme, etc. – to fit your personal preferences.
In contrast, many buyers of established homes can find their newly acquired properties in need of major renovations and updating to better align with their expectations. After all, coming across an existing home that suits all your preferences and needs requires a great deal of luck, and if you do, you will likely have to bid for it. Investing in a house that is still being built gives you the chance to have more control over things that you might otherwise have no say in.
- New construction homes are more energy efficient
With modern construction practices come the usage of more environmentally sustainable materials and the latest design standards in terms of energy efficiency. Examples of these practices include:
- Installing systems that harvest rainwater and recycle gray water which serve as water catchment, minimizing the amount of water that just flows out of the house as runoff. This water usually gets diverted to non-potable uses (car washing, flushing, filling garden ponds).
- Using strong insulators such as rigid foam, spray foam, and cellulose to minimize heat loss and heat gain.
- Maximizing sunlight with active and passive solar design. Active design includes installing photovoltaic systems to alleviate some of the house’s energy demand. Orienting large windows in a way that maximizes natural light and using materials that absorb and release heat gradually are examples of passive solar design.
- Integrating renewable energy such as energy collected by solar panels into water heaters and heat pumps to regulate interior temperatures at home.
Altogether, these designs and integrations can save homeowners a lot of money on energy costs in the long run. Many new constructions are also certified by third-party home energy raters, ensuring that they meet specific sustainability standards.
- New construction homes are up to code
Being the first owner of a newly constructed residential building naturally means that the structure is in pristine condition. You’ll be the first user of every appliance and fixture. Financially speaking, this equates to potentially very low maintenance costs for several years.
Aside from being low maintenance, a new-construction home will be up to code. These building codes – minimum design and structural requirements for safety and resilience – ensure that the house is up to standard and will be more resilient in withstanding more extreme weather conditions.
A pre-owned home may no longer be compliant with local building code. This could be the case for older residences. In addition, the new owner might find hidden issues or come up with design tweaks that better suit their lifestyle and preferences.
As a result, they will have to allot a budget to apply these changes. A new construction usually needs little to no additional expense, especially if the owner had a hand in customizing the home before its completion.
- New construction homes come with buyer incentives
Builders in the initial phases of construction are more likely to offer incentives to encourage purchases and entice buyers to commit early. These can come in the form of lower interest rates, closing cost assistance, and mortgage buydowns.
Home warranties are another important incentive to note, specifically the warranties that go beyond what is legally required, which builders might throw in to sweeten a deal. It’s important for buyers to take note of the warranty period and coverages. Most of them cover the cost of structural damage like leakages and foundational cracks, protecting you from any defects in the workmanship for a year.
Electrical systems, plumbing, temperature regulation, and ventilation are usually covered for at least one more year than workmanship flaws. Major structural defects are covered the longest, typically lasting five years.
On the other hand, much fewer pre-owned homes are covered by warranty. This depends mainly on how old the structure is, so there is a potential for additional maintenance costs in the course of a home’s normal wear and tear.
CURRENT HOME BUILDING TRENDS
To determine what’s hot and what’s not among home features and aesthetics, builders conduct a lot of trend watching and research on homebuyer preferences. And they’re more likely than not to integrate these trending developments in their new construction.
If you plan on buying new construction in Collegeville, PA or have committed to a project in its initial stages of construction, the list below can serve as a preview of the features you can expect or preempt. It can also function as an idea board to guide your plans for what to add to your future home.
#Trending: Smarter homes
More and more homes are integrating AI technology, and consumers have embraced these smart home features mainly for energy efficiency and security, with entertainment being a distant third priority. Smart thermostats and app-controlled door locks in particular are convenient and practical features that any homeowner can appreciate.
It should come as no surprise then that more homeowners have integrated these technologies as they’ve become more accessible within the last decade. In 2015, around 7% of US households adopted smart home tech. That percentage rose to 22.3% in 2023. This number is expected to rise along with the current rapid pace of AI development.
#Trending: The enduring appeal of the kitchen
Kitchens have become the largest area of the house, which can be attributed to a few factors including the shift to more open floor plans. Having obstruction-less transitions between the common areas of the home has made entertaining guests more casual, so conversations continue as the host goes to the kitchen to prepare food and drinks. Thus, open floor plans have made homeowners want to improve the look and functionality of their kitchen.
Perhaps the most prominent fixture of the kitchen is the island. The overall trend suggests that homeowners have recognized its versatility, which has given rise to more massive islands. They can serve as a dining area, workspace, breakfast bar, easy-access storage, and secondary receiving area for guests you know more intimately.
As for kitchen appliances, newer and projected changes to home-building regulations that intend to reduce reliance on gas and other fire hazards have resulted in a shift towards induction stoves.
#Trending: The enduring appeal of outdoor living
More buyers have come to treasure their outdoor spaces, wanting to maximize the time spent taking in the outside air. Master suites and living areas are now built with direct access to a porch or patio with screening and covering mechanisms as protection from the elements at certain times of the day or year.
Even thresholds have been removed, at least visually. Patio and French doors and picture windows have been popular since the mid-20th century and will continue to be in fashion given the added energy-efficiency benefits of utilizing natural light.
In terms of fixtures, fireplaces and fire pits remain popular as intimate gathering spaces. For properties with a pool, outdoor speakers and TVs and/or projectors provide added entertainment.
Pickleball has skyrocketed in popularity in the US in recent years. In fact, it has been the fastest growing sport in the country since 2022. This combination of table tennis, badminton, and tennis is easy to learn and can be enjoyed well into old age, making it an ideal pastime for families and their friends. It will only be a matter of time before developers begin contracting local pickleball court builders to meet the growing demand of homeowners eager to play this sport in their own backyard.
HOW TO FIND YOUR IDEAL NEW-CONSTRUCTION HOME
Navigating the new construction real estate market requires due diligence. If you put in the work and play your cards right, you could end up reaping immense financial rewards while living in a home that you had a hand in building.
Here are a few tips to get you acquainted with the complex process of finding and building a home you can truly call your own:
- Do your research on the developer
Get a feel for the reputation and track record of developers looking for early investors in your desired locale. Review feedback from a variety of sources and watch for any legal issues the developer may have faced. If possible, visit any of their completed projects or browse their portfolio to assess workmanship and buyer satisfaction.
- Understand pricing, financial options, and warranties
Your research should extend to the financial aspect of acquiring new build properties, which are usually listed with their base prices. Any upgrades and add-ons could incur additional costs, so clarify what is included in the base price and what additions will result in extra charges.
In terms of financing, be sure to know all of your options. Ask the builder for a list of their preferred lenders who might offer different incentives. Compare their offers with external providers to obtain the best possible deal.
Finally, ensure you fully understand the details of your prospective home’s warranty so you know how long different aspects of its construction will be covered.
- Inspect the home and make realistic estimates
Pay occasional visits to the construction to check on its progress and maybe resolve any issues you might come across. If you want professional advice, consider getting an independent inspector. Doing so will also help you better estimate the home’s completion date so you can plan your moving-in date accordingly. Be sure to factor in possible delays.
- Hire a real estate agent to make the process easier for you
Navigating the new construction market is a complex and demanding process. As a prospective buyer, you would want to leave no stone unturned. At the same time, seller’s markets like Collegeville, PA put the onus on buyers to act quickly when they find a property they like. Otherwise, a more decisive buyer could outbid them for the home.
A real estate agent’s expertise can be invaluable in your search for new construction homes in Collegeville, PA. A Realtor will have in-depth knowledge on the local real estate market. Their professional network will likely include builders and developers. In addition, their access to multiple listing services (MLS) gives them advanced information on exclusive listings or new projects that haven’t been made public yet.
But that’s just the tip of the iceberg. A real estate agent will also guide you throughout the entire buying and building process by conducting market analysis, assisting you with financing and customization, and representing your best interests until you’ve settled in your new home.
EXPLORE THE COLLEGEVILLE, PA NEW CONSTRUCTION MARKET WITH MARIE DEZARATE
DeZarate Real Estate Sales Group specializes in assisting buyers, sellers, and investors with their real estate needs in Chester, Delaware, and Montgomery Counties in Pennsylvania. They’ve been in the business for 17 years and counting, led by founder Marie DeZarate, a seasoned and award-winning agent of residential real estate.
Having sold over $200 million in real estate, the DeZarate real estate team guarantees top-level service and support tailored to each client’s unique circumstances. When you hire us, you’ll get a team of professionals who will tirelessly advocate for your interests, manage negotiations, and provide valuable insights to make sure you have all the information you need when it’s time to make that big decision.
Reach out to Marie DeZarate and her team to explore your new construction options in Collegeville, PA. Call 484.881.2397 or send us an email here.