New Home Construction Trends
So, what does the future hold for you and your new home?
While we are not trained economists, there are certainly a number of factors that we believe should be considered if you are thinking about building a new home in the future. We are just going to try and hit the relevant points to consider if you are planning on building a new home.
The mortgage industry.
One of the most recent trends we are seeing is that the "underwriting" process for approval of a mortgage has become more stringent. This doesn't mean that you won't be able to get a mortgage, but that the process may take a little longer. Ask around and see which mortgage companies seem to be holding up the best in the current circumstances and talk with them.
This is a difficult one to call, but the fact remains that interest rates are still low compared to years past. Rates have gone up some recently and the experts tell us that we will probably continue to see rising rates for the next several years. Now may be the best time to lock something in.
Hard construction costs
Up until 6 months ago, hard construction costs were down dramatically from where they were several years ago. However, in the last 6 months, we are now seeing costs moving back upward, mostly due to gas prices and the effect they have on transportation and petroleum as a component of many building products. China is having a big impact on costs as well. Cement is a good example. While this is not a petroleum based product, China is using a lot of concrete in all their new construction and this is having an impact on the supply and demand here in the states. The result ... concrete prices are at an all time high.
Builders with completed unsold homes have been "cleaning house" and this has driven the market pricing down, but here locally, it seems that a lot of this inventory is now gone and we are seeing pricing start to stabilize.
So, what does all this mean to you? With the recent local market conditions (which have been far healthier then other parts of the nation) the cost to build a new home has fallen. However, we may very well have seen the bottom of this. If you have been considering building a new home for some time, now might be the best time to start. Remember, here at MorningStar Homes, we do "fixed price" contracts and our price does not go up once you sign a contract with us. We can also refer you to a mortgage company that we have been working with for a number of years that has served our past customers well. For more information contact us at firstname.lastname@example.org.