Are you considering buying a custom home? If so, now could be the perfect time to start the process. There are numerous benefits to buying a custom home that can make it an attractive option for many homebuyers. Let’s take a look at why now may be the best time to make your dream of owning a custom home come true.
In the world of real estate, there is a moniker that has stood the test of time, “The best time to buy real estate was yesterday.”
In today’s economic climate with fluctuating interest rates and major media reporting about a looming recession, potential homebuyers are being dissuaded from purchasing a home. However, the custom homebuilding market is seeing many factors that positively contribute to why it truly is a good time to build a custom home.
Many housing economists believe housing prices will decline in 2023. They are generally referring to resales and production builder inventory – not custom-built homes. The production builders are working to unload inventory at a rapid pace, which will significantly reduce the availability of inventory in 2023.
While production builders and homeowners who must sell may reduce prices, there are little expectations for significant cost or price decreases for new custom home builds. The custom home building industry is seeing a stabilization of critical influences impacting supply of materials, labor, lead times and costs making it a good time to build your home.
Supply Chain Stabilization
During the COVID pandemic, supply chain issues ran rampant throughout most major industries across the globe. The construction industry was hit especially hard due to its reliance on lumber and other necessary materials including copper, drywall, and concrete.
As we emerge from the pandemic, the supply chain concerns have stabilized and building products are now more readily available. Previously, ordering materials as simple as tile for a backsplash would result in delayed delivery and incomplete orders being delivered. As the supply chain returns to normal builders can better predict build times and ultimately decrease potential delays and costs.
Diminishing Labor Costs
As the pandemic revealed shortages in materials, the construction industry has also experienced a general labor shortage and rising costs for skilled labor. Those wage increases for labor in the construction industry have experienced a calming in wage increases. According to the Bureau of Labor Statistics, the last half of 2022 has seen stabilization and a minimal increase in wages of only about .02%.
This steadiness of labor costs creates the potential to reduce risk of cost increases, diminish the overall construction times for projects, and ensure more quality craftsmen are hired for custom home builds.
The decision to purchase a home is one of the largest financial decisions one makes in their lifetime, and the personalized service and expertise of a builder is paramount in having a positive experience.
While the housing market was at its peak, the construction industry was incredibly busy with limited time to take on new projects. Additionally, the focus on personalized service was not possible while keeping up with the ballooning demand. As the market began to cool, builders are now returning to their roots creating a trusted relationship providing their expertise, attention, and craftsmanship to their projects creating a positive client experience from foundation to fixtures.
Ultimately, now may be the best time to build the home of your dreams. With the stabilization of material costs, access to skilled labor, and the personalized experience of a team to work with you every step of the way, having a home that delivers the home you have always imagines is easily within reach.