This Is the Best Time Ever to Start Planning Your Custom Home
If you’ve been following along with Springhouse, you’ve seen us post a lot about our new spec home we’re designing and building. During our regular team meetings, we often discuss the state of the real estate market—especially as it relates to our spec house. Today, we thought we’d share some of our insights with you.
It’s no secret the single family residential market is a hot topic at the moment. Covid has taken it’s toll on supply chain and now interest rates are higher. Everyone is stalling to see what’s going to happen next (including us).
When we started our spec home project in the winter, we had no idea that the interest rate was going to change so quickly. Although we were at the height of lumber and labor prices, we decided to take the leap since the interest rate was low. Once we got started, it was a very busy time for builders and contractors.
Since then, things have taken a dramatic turn—specifically on the architecture side of the business. It takes a lot of confidence to plan even a single custom home project, because it’s difficult to gauge how things are looking in the economic world or where we’re headed. How do you take the leap when everything seems to be in turmoil?
Believe it or not, we’re looking at a time where lumber prices are down at the moment. For example, we recently priced out a home we’re currently breaking ground on. A few months ago, we received a written bid for $100,000 for the lumber package. This past week, they told us it’s now $75,000. The lumber prices have dropped a full 25% since three months ago.
This is the time to start planning.
True, they’re interest rates are higher than they’ve been in a very long time—but mortgage rates are temporary. You can always refinance. In other words, it's still a good investment to mortgage your home.
In the near future, we can expect one more rate increase, but even then, it’s going to be fine. If you act now, you can lock in on the current rate. At Springhouse, we work with several mortgage lenders (no affiliation) to help our clients receive mortgage and construction loans. They can get you a construction loan right now and lock you in for your final mortgage.
If you’ve been holding off, for any reason, keep in mind that material prices are finally coming down. We can now order and receive them better than we have in the last two years. As far as labor is concerned, we’re predicting that contractors will be asking for jobs again by spring. It’s best to start planning now so you can be prepared to build by next year.
The bottom line? This is the best time to plan for a custom home project.
Have any questions?
Although we covered a lot in this post, you may still have some other questions about the state of the custom home real estate market. Whether you’re involved in the custom home process now, or even just considering it, join our free Facebook group—we’ll help you answer any questions you might have! Also, feel free to invite anyone that you think would benefit from this collaborative. You’ll not only get advice from me, but from other people who have been through this, too.
Start the process.
When it comes to designing and building a custom home, nothing beats having a trusted, experienced team of architects on your side. Let’s set up a call to meet, discuss your goals, answer your questions, and settle your fears. We can’t wait to meet you!