Should I Build a House Now, Or Wait?

You’ve worked hard to be able to build the custom home of your dreams, but the 2024 market has you wondering if now is the right time.

So is it?

It’s no secret that the housing market of the last few years has caused many future home buyers to be concerned about the 2024 housing market. One of the main concerns of prospective homebuyers is current interest rates and whether they should wait for the rates to drop before starting the construction process.

In this blog post, we'll delve into the pros and cons of building a house right now, the risks in the current economic climate, and how the US housing market should influence your decision to build or buy.

1. Should you wait for interest rates to drop?

Remember the good ol’ days of interest rates under five percent? We miss those days. 

While it's true that lower interest rates can result in reduced mortgage payments, predicting the market's movements can be challenging. The adage “Marry the house; date the rate!” applies here. We don’t want anyone to miss out on their dream home because of waiting for interest rates to lower. Custom homes are not quick builds, and you might find the process taking longer than anticipated - particularly if you’ve waited for the perfect interest rate along with everyone else.

2. 2024 Construction Market Outlook

Right now, we’re happy to report that the housing market in 2024 is showing signs of resilience and growth, despite uncertainties. New home design trends are emerging, reflecting a shift towards sustainable and energy-efficient features that save you money.

Today is an opportune time to invest in a home with sustainable, energy-efficient features, designed around your needs and lifestyle. The shortage of homes on the market provides an excellent incentive for building the home you’ve been dreaming of for years.

3. Pros of building a house right now

Here are three of our favorite pros of building a custom home in the 2024 housing market: customization, energy efficiency, and modern amenities. 

You can move into the home of your dreams, customized to your needs, habits, and aesthetics; the ultimate reward for all of your hard work over the years. You also won’t be paying for a home that isn’t your dream home; you’ll finally be home. 

We love energy efficiency, and the newest home designs can incorporate the latest energy-efficient technologies, leading to long-term savings instead of higher utility bills. 

A customized home with your pick of modern amenities and designs does sound like a dream come true! Trends and amenities that you want will be the cornerstone of the home, but you’ll never have to deal with someone else’s design preferences cluttering up your new space. 

4. The risks of building a house in this market

Building a house in the current economic climate comes with its set of risks - as does staying in the same situation. Economic uncertainties, supply chain disruptions, and fluctuating material costs can impact construction projects. 

The biggest risks of custom home building in the 2024 market are building too large, not planning on staying in a home long enough, and not making sure your finances are in order. 

5. hOW DOES THE HOUSING MARKET AFFECT THE DECISION TO BUILD OR BUY?

An underrated reason to not shy away from building a custom home in today’s housing market is that building a custom home ensures that you are more likely to stay in the home longer, creating a more stable investment. 

If you’re waiting for a buyers’ market to build a home, remember that many other people are also waiting for home prices to drop. Whereas if you choose to build now—whether it is a buyers' or sellers' market–you can choose your pick of custom home builders and not feel rushed in the process. 

However, if you’re still debating whether or not a custom home is right for you, buying a pre-existing home in today’s market might be the right choice for you. 

6. There are government incentives for new homes

A little-known reward of building a custom home over buying a pre-existing home is the government incentives for custom home buyers. 

You can even cash in on tax credits for energy-efficient home features. 

Government-backed loan programs, like those offered by the Federal Housing Administration (FHA) in the U.S., can also facilitate new home construction by providing favorable loan terms and lower down payment requirements, making homeownership more accessible for homeowners who incorporate energy-saving technologies, such as solar panels, energy-efficient appliances, or insulation, into their new construction projects. 

7. when is the best time to buy a house?

Spoiler: it’s probably not December.

You know what type of house you want and have chosen your ideal location, but when do the experts say is the best time to buy a house?

With spring blossoms and summer barbecues comes the most conducive time to start home construction. During these warmer months, builders can work more efficiently, minimizing weather delays and getting you into your custom home sooner.

8. What Issues is the Construction Industry Facing? 

Like any industry, the construction industry has been hit with several challenges over the last few years, sometimes even impacting our customers. 

The global supply chain remains perpetually disrupted, which feeds into escalating construction materials costs as shortages continue. This is frustrating for both us as home builders and you as our clients. 

We have also found that a skilled labor shortage still exists, and skilled tradespeople and project managers are in high demand. This high demand for high-quality skills can lead to delays and even increased costs.

As we continue to add technology and eco-friendly materials to our builds, we also continue to invest, train, and adapt to these technologies and materials. Progress, sometimes, is time-consuming and expensive. 

why build a home with gtg builders?

Even as the landscape of the housing market continues to evolve, your personal needs, budget, and location should always be at the forefront of your decision-making process. 

With a keen eye for dropping interest rates and another keen eye for emerging design trends, building a custom home can feel like a delicate balancing act.

It’s important to remember your original reasons for building a custom home. These are reasons that are not impacted by the US housing market but rather pertain to your past work and your future goals. 

Most importantly, don't entrust your custom home building to just any builder. At GTG Builders, we're committed to building our clients the homes of their dreams, within budget, and as soon as possible. 

Contact us today to see if we can make your custom home build a reality in 2024.