You’ve been hearing about it wherever you go: the housing market is up – way up. Housing prices are up, land costs are up, interest rates are up, and construction costs are up.
Around the country many home buyers are jumping back into the housing market to take advantage of today’s housing prices and interest rates. And it’s true, buying today could save families thousands of dollars every year in housing costs if prices and interest rates continue to rise as expected.
But what’s really causing the rise in housing prices? Here are a few economic factors that are driving higher housing prices:
Construction Costs: Based on a recent survey from the National Association of Home Builders, builders are reporting a shortage of materials in at least 24 construction categories including roofing materials, windows and doors, lumber, cabinets and more. This shortage drives prices up for our suppliers, which in turn makes it more expensive to build a home today than just one year ago.
Demand for New Home Construction: Fueling the shortage of construction materials is a high demand from home buyers who prefer the lower maintenance and energy efficiency of a new home compared to a resale home. In fact, new homes sales reached a five-year high in May 2013, up 29% from just one year ago.
Seller Confidence: Many homeowners that have been waiting out the market are taking advantage of rising prices to list their older house and trade up to a new home in a better location. In fact, according to a recent survey from Fannie Mae 40% of Americans believe that now is a good time to sell (up from 16% a year ago).
So what does this mean for your family?
Ultimately, the only economics that matter are your own. Your family’s needs, budget, timeframe and lifestyle are the best indicators of whether or not now is the right time to build your custom dream home.
That’s why we have an entire team of no pressure, no hassle New Home Consultants who are here to answer your questions, provide information about getting pre-qualified with a member of our preferred lender team, and create a Personal Value List. These tools are designed to help you design a dream home that’s as perfect for your budget and your timeframe as it is for your life.
Find out more about how our friendly, helpful team can help you discover if now is the right time to build a custom new home. To get started, simply Ask Julie by Live Chat or call (866) 253-6807.
About Wayne Homes
Wayne Homes is a custom home builder in Ohio, Pennsylvania, Indiana, Michigan, and West Virginia (see all Model Home Centers). We offer more than 40 fully customizable floor plans and a team dedicated to providing the best experience in the home building industry. For more information, Ask Julie by Live Chat or call us at (866) 253-6807.