How Does the Interest Hike and Inflation Change my Decision to Build a New Home?
We all knew that the building industry would change from a sellers market eventually. However, what we didn't know was exactly when. The last several years has been nothing short of outrageously low interest rates in anticipation for a recession following the pandemic of 2020. Consequently, the market saw thousands new homes built and a surge in material cost. Contractors were spread so thin, that labor rates where exponentially higher. With home costs high and interest starting to creep up, it made the monthly payments too high for the average consumer. Either costs have to come down or interest rates to drop. Rates continue to climb to fight inflation and it has brought the labor rates down and material cost down as well. when the rates level out spring of 2023 the cost will continue to come down and create a balanced affordable market for a few years. How does this affect you as a homeowner? Higher interest rates may not seem good for you however, they are causing the building costs to come down and balancing the market for the upcoming building year. Now is a great time to pick a lot and prepare to purchase it. Get plans ready and when the spring hits, youll be in a prime position to build your new home!
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