The number of new construction homes being built in Lexington has risen steadily since the downturn in 2009 – many would argue because Lexington has a more relaxed implementation of zoning regulations than nearby towns. Clearly long-time Lexington builders, and increasingly out of town builders, see Lexington as a very profitable town in which to build.
The number of new construction homes decreased in 2022 to 41, after reaching highs of 58 and 60 homes in 2020 and 2021 respectively. In 2022 70 new construction homes were listed, 35 in January-June and 35 in July-December. Whilst 68% of the homes listed in January-June sold in 2022, only 28% of the homes listed July-December sold in 2022. This leaves many new construction homes either on the market or, after cancelling in 2022, about to come back on the market in early 2023. This will inevitably lead to downward pressure on prices. As we write this in January 2023 there are 36 homes on the market in total, 24 (67%) of these are new construction. Also, 24 (or 67%) of these 36 homes are over $2.5 million. With 10 new construction homes cancelled in the last 3 months and a new set of homes coming on in 2023 we predict that there will continue to be an over-supply especially at the higher price points.