Selling a Home in Mount Laurel, NJ When Mortgage Rates Rise: How to Compete With New Construction

When mortgage rates climb, most people think about how it affects buyers. But if you're planning to sell your home in Mount Laurel, NJ, higher rates change your game plan too.

Buyers today are watching affordability closely. Even a small bump in rates can add a noticeable amount to a monthly payment, so buyers are shopping with a calculator in hand. And in many parts of South Jersey, new construction is giving them attractive ways to make the numbers work. That doesn't mean your home can't compete. It just means you need to know what you're up against and what tools you have to win buyers over.

Builders Are Selling the Monthly Payment

Nationally, new home sales have been holding up better than resales. Logan Mohtashami, Chief Economist at HousingWire, recently noted that new home sales hit an 8-month high and are running near 2019 levels, while sales of existing homes are still about 1 million short of where they were in 2019.

A big part of that comes down to incentives. According to Realtor.com, nearly 1 in 5 newly built homes (18.8%) advertises some kind of buyer incentive upfront. The most common one is a reduced interest rate, often through a mortgage rate buydown, which shows up in 13.8% of new home listings.

Here's how it works: the builder pays costs upfront so the buyer can lock in a lower rate. Some builders are offering rates below 6%, which can cut hundreds of dollars from a monthly payment. For a buyer feeling stretched, that's hard to ignore.

How Mount Laurel Home Sellers Can Compete

First, a rate buydown isn't just a builder tool. Depending on the loan and the deal, sellers can contribute toward a buyer's buydown too. You don't have to offer one; it's simply one option on the table. Depending on the buyer and your home, it might make more sense to:

• Adjust your price
• Help cover closing costs
• Handle repairs before or during the sale
• Lean into what makes your home and neighborhood special

That last one is where Mount Laurel homes really shine. Joel Berner, Senior Economist at Realtor.com, suggests that resale sellers should play up their neighborhood's amenities, since many new builds sit in more remote, still-developing areas.

Mount Laurel has plenty to offer on that front: established neighborhoods with mature trees and character, easy access to Route 73, Route 38, I-295, and the NJ Turnpike, a quick drive to Philadelphia, and parks, trails, shopping, and dining close to home. A brand new subdivision farther out often can't match that, and a strong listing should make it obvious.

Today's Burlington County Market Rewards Sellers Who Adapt

Builders have also been quicker to adjust prices based on what buyers can actually afford. Robert Dietz, Chief Economist at the National Association of Home Builders, put it simply: existing homeowners now have to figure out the right price the way builders have been doing since 2022.

For Mount Laurel sellers, that's an important takeaway. You don't need to slash your price or hand out big concessions. But you do need to price and market your home based on what today's buyers can pay, not what homes sold for a few years ago.

Every market is different, too. New construction is a much bigger factor in some towns than others, and incentives vary from builder to builder. A local Mount Laurel real estate agent can show you exactly how much competition you're facing from new builds in and around town.

Bottom Line

Higher rates are making buyers more cost conscious, and builders are responding with buydowns, closing cost help, and price cuts. If you're thinking about selling your home in Mount Laurel, let's talk about what buyers are being offered nearby so your home is positioned to stand out and sell.

Ready to make the smart move? Contact Jacki and Stan Smoyer, The Smart Move at Weichert Premier, at 856.296.7226 or jacki@thesmartmove.com.