You may not be looking at new construction. You may not even like new construction. But if you are thinking about buying or selling in the Charlotte area this year, I do think you need to pay attention to it.

Here’s why.

Nationally, new home sales picked up in March, but builders are still sitting on a lot of inventory. There were about 481,000 new homes for sale, which equals roughly 8.5 months of supply at the current sales pace. That is a lot. And when builders have homes they need to move, they often have tools that individual sellers do not, like closing cost incentives, rate buydowns, upgrade packages, and price adjustments. The median price for new homes was also down year-over-year, which says that builders are paying close attention to affordability.

For Charlotte resale sellers, this matters because your competition is not always just the house down the street. In some areas, you may also be competing with a brand-new home that offers fresh finishes, warranties, incentives, and sometimes a lower monthly payment because of a builder rate buydown.

That does not mean resale homes are in trouble. Not at all. In fact, many buyers still prefer established neighborhoods, mature trees, larger lots, better locations, and homes with character. But it does mean resale homes need to be positioned thoughtfully. Pricing, condition, presentation, and the first impression online matter more than they did a few years ago.

My take? If you are selling, you cannot ignore what builders are offering nearby. And if you are buying, new construction may give you negotiating power, even if you ultimately choose a resale home.

The Charlotte market is not one-size-fits-all right now. Some homes are still moving quickly. Others are sitting. And sometimes the difference comes down to whether the home feels like the best value compared to everything else a buyer can choose from.