The North Carolina housing market is on fire. The competition is fierce, prices are high, and many buyers are understandably nervous about whether now is a good time to invest in a new home. Housing supply throughout the country remains well below normal levels because of the pandemic, and inventory conditions only got tighter due to the unexpected rise in home sales.

Why Prices Have Increased

Lumber is one of the many materials used in homebuilding. As you may have heard, lumber prices have skyrocketed over the last several years. It’s not just lumber that’s in high demand, though – shortages and supply chain issues have had a significant impact on the price of almost every aspect of the building process. Prices have started to come down a bit recently, but there’s no way to predict how demand and future supply chain challenges might impact the market.

The Risk of Waiting

It’s impossible to predict exactly what the home pricing situation will be like for the next months or even years. What we do know is that interest rates remain at all time lows, increasing your buying power, which helps to make up for the increased cost of building or buying a home. Waiting to build your dream home means you could end up paying higher building costs or higher interest rates down the line.

Prudent buyers must weigh their options carefully. Consider your budget and whether you plan to stay in the home long enough to build up enough equity to make money once you sell. If you’re feeling inclined to wait for the reasons listed above, you may end up paying more down the line.

The High Cost of Buying Existing Homes

Many question whether it’s easier to just buy an existing property and forgo the homebuilding process altogether. That may not be the quick solution you might expect. You’ve likely heard horror stories of intense bidding wars on existing properties throughout the region. Such frenetic buying risks the availability of a given home and drives the investment well over the list price. Some buyers are desperate enough to skip home inspections and place substantial cash down payments in order to secure the property. These factors must be considered when weighing the pros and cons of building a new home versus investing in an existing property.

Don’t let anxieties about the future housing market impact your decision-making process. Allow Tingen Construction to address your concerns about building now. We bring decades of experience and craftsmanship to your custom home, allowing you to design the space of your dreams. Contact us today to get started!