Should I buy resale or build new? | February 22, 2021

Right now we are in quite an interesting real estate market with super low inventory levels, crazy low interest rates, and an insane amount of buyers trying to purchase what little is available on the market today.So the question I am getting a ton of is, should I buy resale or should I build new? In a typical market, new homes mean often paying a premium price, but with resales in short supply and prices escalating well above asking price, Is now a good time to build a new home?Possibly.So, just like the resale inventory, there is also a limit of new homes available to purchase which means that the prices on these new homes are also going up each quarter. A lot of this limit is due to the low inventory of building supplies that we are seeing nationwide.And because of the limit in supplies, it is taking longer to build than it normally does. In some circumstances, we are seeing build times as far out as 18-24 months!But if building new is something you have always wanted to do, you have the ability to lock into a specific price range, guarantee that you are under contract for the home you want, and most lenders are able to lock you into these crazy low interest rates upwards of 12 months out.So if you have place to stay while you wait for your new home...Maybe you don’t have to sell your current home to purchase or you can rent during the interim- building might be a great option for you.If you don’t need to be in the new home immediately, then building may be a less stressful option as well.If you aren’t able to wait that amount of time to get into your new home, and you don’t want to get into a multiple offer scenario, then you may want to wait for the market to cool down and inventory levels to come back.Check back in next week, as I dive into what the experts are saying about the market and their predictions.If you have any questions about building a new home in general or in this crazy market, give us a call today.