Maybe you’re spending free time scrolling through house listings, contacting realtors, or hearing about your friends that are searching the housing market to no avail. With all of the buzz around the housing market, you may be starting to look for a home or debating whether now is the time to buy or build. h What decision is best for your family? Which path should you take for your next residence? In the current market, now is an excellent time to build a new home. But why is that? Let’s talk about why building a home is a great option and may be better than buying an existing home listing.
National Interest Rates are at a Historic Low
Through mid-2020 and as of Q1 2021 as the U.S. economy adjusted to COVID-19, mortgage rates dropped to between 2.6-3.5%. This is a fall from 2018 which was an average of over 5% interest rate and 2019 which averaged a 4-5% interest rate on mortgages. In addition, the large population of millennial buyer’s are now buying their first or second home. Meaning, the population that was saving for a new home are deciding to buy now while interest rates are low. This makes sense but while the low interest rates make it a great time to buy a new home, the current demand makes the housing market tough to navigate.
It’s a Seller’s Market
Right now, the amount of home listings on the market are outnumbered by individuals that want to buy a home. This means less home options overall, making it even harder to find a home that best fits your needs. With the increased demand for housing and interest rates at a historic low, this combination of factors makes for a highly competitive market of existing home listings, known as a “seller’s market”.
What is a seller’s market?
A seller’s market is defined as a market situation in which supplies are low but demand is high, therefore creating power for the seller on the pricing of goods; in this case homes.
In the housing market, a seller’s market can make for fierce competition among buyers. The stakes are high because buying a home is a large investment. House shopping is not a small decision, it takes time and effort to shop around and decide the best location for you and which home to invest in for a new residence. In a real estate seller’s market, it is common for sellers to refuse accepting any offers on a home below listing value because the seller knows that competition is high. Sellers in a highly competitive market environment can expect potential buyers competing for the home to offer the full listing price and even a price higher than the listed price to price out competition and claim the house they want.
With these factors in play of limited house listings, low interest rates, and a seller’s market; building a home is a great option. By building your new home, it not only allows you to forgo the competition of existing listings, it also allows you the opportunity to choose the best home plan for your family, customize it according to your lifestyle, and eliminate costly home fixes older homes may run into on top of the cost of the home.
Building A New Home Allows for Options
If you’re going to invest in a home mortgage, building your new home gives you options to choose the best home for your family and lifestyle preferences.
Firstly, when building your new home, you’ve already had the choice of property or land for your ideal location. When working with a builder, like Madison Homebuilders, you have many choices of home plans. Take a look at our various Madison Homebuilders home plans to see which style fits your family the best. If it’s tough to make the decision, here are some tips to help choose the right home plan for your needs.
When working with a builder there are many options for customizing your home as well. When buying a home, you only get to choose from the home listings currently on the market. Whereas when you build a home, not only do you get to choose your home plan, you also get to make it your own by choosing features and accents that match your style preferences. This freedom allows you and your family to incorporate home features you’ve always wanted, such as quartz countertops or simply a side-entry garage. Then, as your home builder, we build the home plan the way you want it with no need to worry about another project afterwards.
When building with Madison Homebuilders, financing is incorporated into the homebuilding process. There are financial benefits of working with our team and we have long standing relationships with multiple mortgage lenders to help you through the process.
Mortgage Lenders For Your New Home Build
Have a mortgage lender you’ve worked with in the North or South Carolina area? That’s great, we’re happy to partner with your preference of mortgage lender to build your home.
If you don’t have a mortgage lender in mind, there are various mortgage lenders in both North Carolina and South Carolina that we’ve worked with and trust to get your new home’s mortgage squared away.
Want to Learn More About Building Your New Home?
If you have land in North or South Carolina or have been saving for a new home but the current market competition has made it frustrating to buy a new home, Madison Homebuilders is happy to work with you to make your ideal new home a reality.
Contact us to get started creating the home that’s best for you while enjoying the current low interest rates.