Fall Housing Market Update: Why Now is Still a Great Time to Buy
Real estate markets are constantly changing and responding to larger economic forces, but the last nearly two years have really thrown a curve ball to the industry at large. Since the summer of 2020, national home prices have increased by nearly 18%.
For new homes, the challenge has been scarcity PLUS the rising cost of lumber and other building materials. Lumber is the number one material used to frame houses, and according to the National Association of Home Builders, that cost added an average of $30,000 to each new home.
Though the cost of lumber has plummeted since May, it is still well above the average price seen in 2019. Based on production and demand cycles, the cost of lumber is expected to continue rising at least through next year, along with other building materials like paint, latex, caulking, copper wire, and structural steel.
The cost of skilled labor also presents a challenge. There were already construction labor shortages prior to 2020, and the pandemic only exacerbated them. Companies are currently coping with smaller workforces and workers who may be sick, exposed, or quarantined.
What does this mean for homebuyers? While home prices have stabilized in some parts of the country, they will likely continue to rise for the foreseeable future, though at a slower rate.
Why Now is Still a Great Time to Buy a New Home
The good news is that interest rates are STILL historically low, which makes building your new home in 2021 a financially smart decision.
If you are ready to make a move, and are financially able, there is no question that it is a great time to buy. Interest rates continue to hover near record lows, which means, even with the added cost of lumber and materials, you can still afford “more house” than you could just two years ago.
In addition, used homes continue to be hard to come by with multiple offers over asking price and buyers willing to waive inspections. With a new home, you know you are getting a well-built home that has passed all inspections, doesn’t need remodeling, as was designed by you!
We’re here to make sure your new home stays within your budget due to our extremely efficient process. Don’t wait, prices could continue to increase and so could interest rates. Now is the RIGHT time to build!
If you’re ready, we’re ready! Contact Alex today at 616-202-3583 to learn more about our process and move into the home of your dreams sooner than you ever expected.