23 Jan Why You Should Consider Building A House In Shifting Economic Times
The past two years have been fraught with upheaval and uncertainty in the world of home building and even though stability is expected to return, many would argue it’s still a bad time to build. But there’s an argument to be made for building a house in times of economic variability. Here are some reasons why we think 2023 might actually be your year.
1) No need to panic
Right off the bat, it’s helpful to note that there is a difference between the housing market today and the problems faced in 2008. One of the big differences is that there was a glut of supply in the market in 2008 and that does not exist today.
2) Interest rates
Interest rates may be high now, but they are expected to fall within the next several years. Most people refinance long before the maturity of their loan—possibly as soon as six months to a year after closing. If interest rates continue to rise, you’ll be happy that you built now.
3) Home value
Your home’s value is likely to increase when looking at it in the long-term. In order to take advantage of that, there is no real benefit in waiting. The low level of housing supply will continue to support housing values without significant decreases in value.
4) Construction costs stabilizing
One of the most significant frustrations in the past several years has been the costs and unreliability of construction. The Fed interest rate increases have slowed the pace of cost increases which should lead to overall construction costs increasing at a more normal pace. In addition, the supply chain issues that have been plaguing the industry appear to be improving.
Making a decision of this magnitude can feel overwhelming but with some thoughtful consideration, you can confidently choose the right path for you. One of the most important points to consider is if you are building your forever home. If you are planning to live in your home for longer than 5 years, chances are good that you will benefit from price appreciation even in the midst of shifting economic times and be able to enjoy a home you love at the same time.
The team at Dahl Custom Homes is here to help you with any and all of your Corridor custom home needs, so please don’t hesitate to contact us if we can answer any questions or provide you with more information.