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Is Now the Time to Build Your Custom House?
If you could go back in time to 2019 and try to explain the last two years, you might not be able to. There have been so many changes to the world that it doesn’t look or feel the same. And yet, you still need a home that you can live in. Fortunately, if you’re hoping to find a good time to build a house, you can rest easy knowing that you’ve found it. Here are several reasons that starting in 2021 is a great choice.
Is Now a Good Time to Build a Custom Home?
If you have been watching the changes to the real estate market and pricing construction materials, you may wonder what is the best time to build a house. Although these can be important factors because they may affect availability and the total cost of the project, there are other considerations you should make. Everyone goes through cycles in life, and many of those cycles serve as a good time to build a custom home:
- Young couples who want the maximum time to enjoy a custom home
- Families with young children getting bigger
- Kids leaving the nest
- Older adults getting ready for retirement
Sometimes a custom home is a better fit than going through a series of starter homes until you finally build your perfect house.
Wondering if you should build a house now or wait? Read this guide for more information.
Is 2021 a Good Time to Build a House?
Even if you’re ready for a custom home, you may still wonder, “Is it a good time to build a house?” Although the last couple of years have shown a lot of changes, there are several reasons you may want to start as soon as you possibly can.
Want to know more about building a custom house? Look at our gallery.
Lumber prices hit a peak in the spring, and they have been steadily dropping since then. In fact, they’re already down more than 40%. It’s not always useful to time your project based on material prices, though. You’re still several months away from the start of construction, even if you have a consultation with a builder today.
You probably haven’t missed the inflation that has been going steadily up for more than 18 months. Although lumber prices are finally coming back down, you can expect to pay more for several aspects related to construction, including:
- Fuel prices
- Raw materials, like copper, vinyl, steel or concrete
- Labor costs, due to the ongoing shortage of qualified workers
You can expect these costs to continue to increase for the next year or two, on top of the price of land. The sooner you get going, the more you may be able to save.
Although not all of our clients choose to finance a custom house, many do and now is a very good time. At the moment, money is cheap. Interest rates are at near-historic lows. They are unlikely to go any lower, and they won’t stay at this level forever. In fact, over time, they will probably go up to control the pace of inflation. If you’re taking advantage of the strong economy to improve your portfolio and you want to finance your home project, you’ll be glad you started while the rates are low.
Need help finding land for a custom home in New Jersey? We’ve got several tips.
Will Lumber Prices Go Down in 2022?
Lumber prices have got a lot of attention in the past year, mostly because of the way they skyrocketed. We think it’s important to keep the price of materials in mind while making a decision about timing, but it shouldn’t be the only thing you think about. Lumber prices are still dropping from spring’s high, but they will probably bottom out and start to increase again along with other construction materials. It’s hard to predict how the supply chain will be different in 2022, but it’s probably something you don’t need to worry about until you’re almost ready to order materials.
Worried about lumber prices in NJ? We can help put your fears to rest.
What Is the Average Time to Build a Custom Home?
Given the time of year, if you haven’t already started the new house construction process, you may be talking about building a home in 2022, not 2021. There are a lot of aspects of custom home building that you can’t rush, like finding land or hiring an engineer or architect to design the home for you. The whole process may take at least a year. If you get stuck reading the news and wondering when will be a good time, you might end up waiting until 2023.
Instead, we recommend that you start to interview builders. You don’t have to commit to a timeline when you’re testing out companies to see how they can help you. Be sure to ask a lot of questions, especially if you’re almost ready to make a decision. They may be able to address your concerns in a way that makes your path clear.
Ultimately, you want to be sure that you’ll be ready to build your home. Other factors like interest rates and material prices make a difference, but they’re not as vital as deciding that it’s the right time for you. As New Jersey builders, we at GTG Builders have the experience you need to turn your dream home into the best decision you have ever made. Contact us to see why our clients call us the best home builders.