Is It Time To Build?
As a residential architect, people often ask what types of projects interest my clients as an indicator of the overall economy. With record number of home foreclosures and short sales, most assume any movement in the residential architecture business would be in the area of additions and renovations. However, that assumption has proven false. In a housing market that has been at its lowest in decades, interest in custom designed homes is out pacing that of additions and renovations.
Surprised? Is it really a good time to build a custom designed home? Perhaps it is, depending on what you are looking for.
Looking at the housing market at the end of 2010, home sales remain relatively low and generally there are more homes for sale than buyers. If price is your number one concern, you should have no problem finding a home without building. So do that!
But what if you can’t find the home you want where you want to live? Or what if you have been waiting your whole life to build your dream home? Then you are a custom home buyer. For you it doesn’t matter how many homes are on the market or how low the price of an existing house is because none of those houses are right for you. The question for you is this. Is now the right time to build a custom designed home?
If your personal financial situation has afforded you the ability to take advantage of opportunities that currently exist, then YES. Now is the time.
Land costs are lower now than they have been in years. City lots and acreages are selling at less than half of what they were listed at three years ago. Construction costs remain very competitive and interests rates are at all time lows. If you have the desire and financial ability to build a new home, there may not be a better time.
The economy, specifically the housing market, will not remain in a slump forever. With every downturn there is an upswing. The upswing in the housing market will bring an increased demand for new homes and vacant land resulting in increased prices and interest rates. Suppliers are also predicting that when the upswing begins, product costs will increase significantly due to the lack of current inventory.
It doesn’t mean you can’t wait and see what the future will bring. In fact that’s what most of us do. We catch the wave just as it makes its way to shore. However, you may be sitting on the greatest building opportunity of your lifetime.
Remember building a custom home takes time. You have to find the land to provide a setting, the architect to paint the perfect vision, and the right builder to give that vision life. Plan now to see where you want to be, starting early enough to get there. It’s a lot like surfing. You have to see the wave coming and start paddling before it gets to you. Otherwise you just might miss the greatest ride of your life!