Waiting To Build Will Cost You Thousands Of Extra Dollars

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Many home buyers have no idea that the cost of construction has historically increased year after year. What does that mean for you? Well, for one thing, it means that delaying your next home build will likely cost you thousands of extra dollars not to mention wasted time.

We've already talked about interest rates and how that can greatly affect whether you should build now or wait. Then, we discussed the scarcity of land and lots here in the Omaha area. Now, we need to talk about how waiting until next year to build will actually end up costing you a lot more money out of your pocket.

Did you know that the U.S. Census Bureau keeps tabs on the cost of construction in the U.S.? In fact, they have been keeping up with those numbers for many years. What they have been able to determine is that over the last 20 years, the average cost of a new home annually has gone up about 2.8% each year. That is mainly due to commodity prices such as wood, lumber, shingles and the price of gas, as well as other factors.

Let's do some figuring: If you take that $200,000 house that you have been longing for and you just wait one year (assuming that the cost of construction only goes up 2.8%), it is going to cost you an additional $5000-$6000 to purchase that same home a year from now. That is not even including the increased cost of land that we discussed earlier or the possible increase in interest rates. When you start adding up all of the numbers, the cost of your beautiful $200,000 dream home can go up astronomically in the next 1, 2 or 3 years.

Don't make the mistake of trying to wait out lower interest rates because the market will fluctuate. No one can guarantee that rates won't increase substantially a year or two from now. Do you really want to sit on the sidelines and let these fantastic rates get away?

You've probably heard the saying that a “bird in the hand is worth two in the bush”. In other words, you don't know what is around the corner, so don't rely on better rates, more land becoming available or building prices going down. We know what history has shown, so make an informed decision now that will benefit you later.

You definitely do not want to look back a year or so from now and wish that you had made the decision to buy a new home when rates were great and building prices were lower. Call or visit us today so we can help you build your next home!

Going…Going…Gone? The Scarcity of Lots in Omaha

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Over the years, there have been a number of lots and home sites available for potential home buyers. As time has gone on this has gradually changed.

No Money

As with all places in the United States, the housing industry in Omaha has been impacted by what’s gone on nationwide. In addition, lenders that once happily loaned money for land development are now no longer willing to lend money for land developers to put in new subdivisions. This means finding a lot to build on is much more difficult than it once was.

Not Enough Lots

Once there was what seemed like countless premium lots in Omaha. Now we are starting to run out of the A+ lots. These lots are much more scarce than they were just a few years ago. With the law of supply of demand, the lots that are left have rapidly rising prices.

Buy Now

If you are considering building a home in the next few years, now is the time to buy the lot. We are anticipating home lot prices to rise in spring 2012. That’s just a few short months away and there’s not much time left to lock in the lower prices we have today.

Omaha’s housing lots are becoming scarce. Once in abundance, the home lots around town are slowly dwindling down. This means prices are going up. Prices are expected to rise in the next few months making now the perfect time to buy a lot for your new home.

Now is the Time: Low Interest Rates Mean More Home for Your Money

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Interest rates have been low for the past decade. But did you know they’re at the lowest they’ve ever been right now?
 
Low Interest Equals More House for Your Money

Interest rates are running at about 4.0% to 4.25%. Based on a $100,000 home, if the interest rate was to go up just 1%, it would increase your payment by $114 a month. Over the course of 5 years, that would come to $6,000 total interest you would pay. Take it out even further and it won’t take long before your home will cost you $10,000 more just based on the 1% increased interest rate.

Home prices really have hit bottom for the most part. Couple that with great interest rates and you’re looking at a great bargain when it comes to your next home. 

Lowest Interest Rates of Your Lifetime

What does this all add up to? Now is probably the best time to buy as it has been in your lifetime. It sounds extreme but it’s true. The interest rates really are rock bottom because the government has been borrowing at 0% interest. This has worked out to be great for the consumer who is even remotely in the market for a new home.

The question that really begs to be asked is: How long can the federal government continue to borrow at this 0% interest? The answer to that question is they can’t continue borrowing at a non-existent interest rate forever. As a consumer, you need to take advantage of this while it still has the interest rates at these historic lows.

Interest Rates Will Increase Soon

The fact of the matter is interest rates will increase. It is only a matter of when. It may not be long either. We believe the day is probably coming soon. Since the future may hold higher interest rates, today is the best time to take advantage of them. Charleston Homes has a great selection of homes that you can get for a fraction of the price right now before the interest rates jump up. While these interest rates are low, you can afford much more house than you will be able to when they jump back up in a short time.

Has this peaked your curiosity to think about a new home? Visit one of our model homes to see what we offer or set up an appointment to talk with one of our representatives about what your options are. There has never been a time better than right now to think about buying a new home.