Is now a good time to build a home?
January 24, 2012
“NOW…is a great time to build” – Dan Metzler, President of Metzler Home Builders.
We have already seen some positive signs in the home building industry in the early weeks of 2012. Many in the industry could be described as “cautiously optimistic” regarding this slow recovery in new home construction. There are some definite signs of increased activity, and with that comes reason to believe that some of the best advantages of building a new home now could be changing in the near future. Here are 4 reasons that NOW is a great time to build.
- Interest Rates – Rates for a 30 year fixed mortgage are currently around 4.0%, and for a 15 year fixed are under 3.5%. Interest rates seem to keep drop- ping lower and lower…but eventually they will come back up. If you are waiting to see if they drop even lower, you are better off taking advantage of these historically low rates now and eliminating the risk of waiting too long.
- Cost of Construction Labor & Materials – The prices we are seeing from sub-contractors and suppliers are extremely competitive. Many contractors are willing to bid their services very competitively so they can keep their crews busy. The cost of building materials has been low also, but we are starting to see price increases. As our industry continues to recover (which we are already seeing signs in early 2012) the pricing on labor and materials will gradually creep up. Now is a great time to build your dream home and take advantage of these competitive prices in labor & materials that are sure to increase.
- Quality of Contractors – Builders and sub-contractors who have made it through the recession must be doing something right. A recession will weed out those businesses that are not providing a quality product or service no matter what the industry; the construction industry is no different. You can be assured, now more than ever, that most contractors out there are providing a quality product at a fair price, and have been for a long time.
- Building New vs. Buying Existing – You might be aware that in our current real estate market, you can purchase an existing home for noticeably cheaper than a new home with similar features and comparable size. Is this the only factor that matters when comparing building a new home to buying an existing one? As a builder of new custom homes we might be a little biased, but here are a few things to consider.
*New homes are more energy efficient; they will save you money by using less energy, sometimes significantly less than older existing homes.
*A new custom home will be exactly what you want! You may find an existing house that has most of what you are looking for, but you will still have to make some changes to get things exactly the way you want it. You can save the money of renovating or updating, and put it toward building your new home.
*New homes have warranties. Even if the builder does not provide a warranty, many products have homeowner warranties. At Metzler Home Builders, we provide a full 1 year warranty and service your home at your convenience for things that may come up during that first year and beyond.
These are just a few things to consider if you are considering building in the near future but are unsure of the best timing. NOW, really is a great time to build!