If you speak to any real estate professional right now, you are likely going to hear two things: it is a great time to buy a home, and they’ve never seen a real estate market quite like this one!
Both statements are true. This is a wild time to be in the real estate industry!
We can all agree that now is a great time to buy with historically low interest rates, but there’s no denying that for-sale homes are disappearing fast, many times after bidding wars, and sometimes by buyers who haven’t even stepped foot on the property! This may cause even the most motivated person to think twice before entering the real estate market.
How do you balance the “great time to buy” message you keep seeing and hearing, with the reality of an extreme seller’s market? We are here to help! First, we are going to weigh the pro’s and con’s of buying a home in today’s market. Second, we are going to share why buying a new construction home is the best option to find your new home. Full disclosure: even buying a new construction home will require patience in today’s reality!
First and foremost, mortgage rates are at all-time lows. Yes, we’ve been saying this for years, but they are even better than they were a year or two ago! We are still enjoying the benefits of a substantial rate cut made by the Federal Reserve in 2020. A low interest rate can make buying a new home even more affordable, meaning you can buy more home than in years past!
Conversely, home prices are rising. Experts don’t expect that to change any time soon, so if you can afford to buy now, now is the time to do so with higher prices on the horizon. National Association of Realtors Chief Economist Lawrence Yun expects home prices to rise 6.6 percent in 2021, leading to home equity for homeowners. Yun has also said low interest rates are helping homebuyers balance out the rising costs that affect affordability.
One of the most pressing reasons to move now is that your current home no longer works for you. Maybe there is no office space, or maybe there are not enough spaces for two or more people who need a quiet space to do work? With all of us spending so much time at home, our homes are transitioning from a home base to a home town. We live, work, and play in our homes now. Maybe you need a space for that gym equipment you bought? Maybe you simply want another living space, just to space out your family? Whatever the reason, you can consider the headache of living through an active home remodel, or instead, consider jumping in the market to find the right new home for you!
The challenge is that you are not the only one who needs to move now. We are in a thriving seller’s market with no end in sight. In fact, NAR reported that there was just a 1.9-month supply of homes in December 2020.
So how do you find the home you need in a hot seller’s market where bidding wars have become the norm? Buy new construction!
That’s right, the insider tip to taking advantage of low interest rates by finding a new home that checks all those must-have boxes, with home offices and flexible bonus spaces perfect for home gyms or added spaces to escape from those you live with, is to buy new construction! Instead of wasting time in one bidding war after another, switch gears and visit one of our new communities!
Remember patience is still key when buying a new construction home. It’s just as hot of a market in our model homes as it is in the overall real estate market. You should expect a longer than normal homebuilding experience. New home construction is dealing with several delays in everything from wet land conditions to a lagging supply chain. But know that when you put down a deposit on a homesite and floorplan, you can rest assured that no one will outbid you in a bidding war.
Our internet team is a great first step to buying new construction. We suggest compiling a list of those must-haves and really-wants in your ideal home, and consider what new locations your new normal allows you to explore when buying a new home. If you will be working from home going forward, you may have new options for where you can live and that can open up a lot of possibilities. We can help you identify new home communities that could be a good fit for your new lifestyle, while also narrowing down the floorplans that will work for your needs. We also have a list of lenders who can help you determine your new home budget. Once you are ready, our internet team will help you set an appointment to visit a community.
We know that this last year has been one test of patience after another, but we assure you, this one will be worth it. In the end, you will get your keys to a new construction home with the spaces that best fit your needs! And that is well worth the wait!
Contact our internet team at [email protected] or (866) 551-7995.
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