|
While it seems no one has a crystal ball about the housing market,
you'd assume it's a bad time to build that dream home – at least until
the market comes into some kind of balance.
But the truth is, it may never be a better time to build. The silver
lining in all this is that land prices have been and continue to go
down, materials prices are competitive and there are a lot of
contractors out of work, willing to resort to bargain basement prices
for their services.
According to CNN Money, framing lumber is now 18 percent
cheaper than it was a year and a half ago, while drywall is selling for
40 percent less. Even land prices are 20 percent lower in some areas
due to developers having acquired too much land before the bubble hit.
Thanks to a 34 percent decline in new home starts, you won't have to get on most builders' waiting lists, either.
According northern California-based Kensington Homes' custom
homebuilder Jeremy Bernau, just a few years ago when the real estate
frenzy was in full bloom, the cost of materials, land and labor was
skyrocketing.
Because contractors and trades were so busy, they could charge
pretty much anything they wanted for their services. Of course, all
that has now changed and a lot of the costs now are reminiscent of ten
years ago.
To top it off, many cities and towns are making it easier to
cut through the red tape when building a home these days. Building
permit and impact fees are adjusting downwards in some areas as a
response to changes in the market.
Of course, building a new custom home isn't something to enter
into lightly. Building on speculation or to "flip" a property for a
profit may not be a safe bet right now.
But if you've been hanging on to land for just the right time
to build your dream home to stay in for the long term, it just may be
time to dust off those blueprints and get busy getting some bids.
|
Blog