Don’t drag your feet when it comes to signing a contract to build or buy a new home. There are some definite advantages to beginning that process before the end of the year, such as:
1. Low interest rates. 30-year fixed-rate mortgages are still around 4%, but most economists are predicting that interest rates will soon be on the rise, and when rates do, you may not get the home you want as your purchasing power will decline.
2. It Can Take Longer than you Think. The quicker you start, the quicker it will be over. Many buyers under-estimate the length of the upfront planning, permitting and approval process that goes into a new-construction home. It can take 30 to 90 days to get architectural plans submitted and permits approved prior to the time of actual construction. Plus, custom homes in the Valley of the Sun are often built on slopes or other challenging environments, which can require extensive infrastructure work and lengthened build times.
3. A Better Price. Builders should have secured their 1st quarter 2016 contract prices for labor and building materials. In the spring and summer when everyone is building, increased construction costs are likely, which will be passed on to you. So buyers who decide to sign a contract with a builder now instead of waiting until next year may see some cost savings by taking advantage of 2015 pricing. And when the demand is highest and builders are busy – in the spring-summer buying period, prices on to-be-built homes are the mostly likely to rise.