“Is now a good time to build?” is a common question.
It may seem as though the housing market hasn’t recovered yet from it’s devastating fall nearly three years ago. However, there are a number of reasons why now may be the time to get the best value for your home building investment.
- Home Prices:
- It isn’t possible to pick the bottom of the current housing market. Supply and demand impact price as the inventory of older homes continues to dwindle and the current supply of new homes remains low. As the demand for new homes rise, so will prices.
- Interest Rates:
- Mortgage and construction loan interest rates began to inch up in 2011 and are likely to maintain that trend as the overall economy and demand for new homes continues to improve. Acting now can save money as interest rates continue to climb. Every quarter-point change in interest rates is equivalent to approximately $6,000 for each $100,000 borrowed over the course of a 30-year fixed-rate mortgage.
- Materials and Labor Costs:
- Manufacturers, suppliers and trade contractors have streamlined their operations and honed their costs of doing business. They are running very lean and may raise prices if there is an increase in demand for new housing.
- Time is of the essence – current buying conditions will not last and are not likely to get any lower.
- Attractive pricing
- Low interest rates
- Build greener and better – cost of ownership has never been less as homes are being built much more efficiently
- Tax benefits
- Building wealth – with lower ownership costs the potential for equity increases dramatically
Affordability is at an all-time high and mortgage rates are at historic lows which makes this the perfect time for first-time homebuyers and empty nesters alike to build the home of their dreams. Homeownership is the American dream and there may never be a better time to build than today.