Is now the time to build a new home?
In one word, the answer is Yes! There are many reasons. Here are just a few:
– Historically low interest rates. 30 year fixed rates can currently be had for under 3.5%. 20 and 15 year terms are even lower, with adjustable rates beginning around 2.75%. These low rates allow for greater affordability for both first time and move up home buyers In some cases, the interest rate break can translate into as much as a 20% – 25% greater purchase advantage for monthly mortgage loan qualification and affordability. Greater loan qualification translates into a larger and / or higher quality home buying opportunity.
– Overall construction costs are still lower than they were at the peak of the housing market. We can build the same house today for approximately 15% less than in late 2006. However, this market opportunity is not expected to last long. The housing market is showing signs of picking up across the country, and along with it are slowly rising commodity prices for wood, steel and concrete. We are also beginning to see some spot labor shortages in some trades which will ultimately cause labor rates to increase. Still, with all of this, it remains a good buyer’s market for now.
– The building industry has made many technological advances in the past 4 – 5 years during the market downturn. It is an exciting time to be building a new home. There are many new and cutting edge products and systems on the market that make a home much more energy efficient and significantly more comfortable. For example, high performance geothermal systems combined with advanced building science practices make for a noticeably improved indoor environment.
– Super cool advances in appliances, convenience items, exterior and interior finishes and window & door systems allow for home owner personalization as never before. Manufacturers and suppliers used the last 4 years of the housing market downturn to learn how to make their products better, more environmentally friendly, and durable. In some cases, new product offerings over the last 2-3 years have exceeded that of the industry’s last 20 years. The winner: You, the new home owner.
Building a new home today is more fun than ever! The end product incorporating great design and today’s state of the art building practices will certainly yield long term operating efficiencies, comfort and value.
