If you’ve caught the new home bug, now could be a good time to make a purchase – especially as mortgage rates continue to linger at an all-time low. But as you consider the wish list of ideal features in your next abode, you may be weighing out whether building a home or purchasing an existing one would be best.
While existing homes may provide you a space in a well-established area – complete with mature shade trees – a brand new house could be more customizable, which in turn would be better able to meet both current and possible future living space needs.
Some other key factors to consider in the new versus existing home dilemma – especially in the wake of the COVID-19 pandemic – include:
- Availability of home building supplies.
- Time frame for completion.
- Safety precautions with contractors and other workers.
Since the COVID-19 pandemic took hold in the U.S. back in early 2020, building supplies – along with many other tangible items – have been back-ordered and more difficult to obtain. This supply and demand issue, in turn, has driven the prices up substantially.
For instance, in early 2021, the price of lumber rose more than 230%, and is anticipated to keep going up. Some experts estimate that the higher price of lumber alone could increase the cost of building a single family home by more than $36,000.
Time frames for completion of new homes have also slowed down considerably. This is due in large part to longer wait times for supplies, as well as the added precautions that contractors are now required to take.
One of the best strategies for finding the home of your dreams – whether it’s brand new or has a long history – is to work with an experienced real estate professional. In addition to narrowing down the home that works best for you, we can also provide you with a no-cost, no-obligation estimate of what your current home is worth.