In my 37 years of selling and building new homes, the answer to the question is absolutely now is the best time to buy.
Why? Let’s look at the reasons:
1. Lowest interest rates in history. Never have interest rates for homes ever been this low. They may never be this low again in our life time.
2. Lot prices are the lowest in 5 years. After an 18 year increase in lot and home prices, now the prices for lots have come down below the cost to produce the lot. When the market returns to normal, the price of lots will be twice the current cost. Also, there are no new developments for lots due to lender not loaning money for development. When the lots we have now are gone, it will increase the price of home dramatically if there are any lots to purchase.
3. Profit margins on new homes are the lowest in 20 years. Due to lower demand for housing since the tax credit expired, builders are offering homes at the lowest profit margins in 20 years. It is a buyers market so take advantage of it.
4. Energy features in new homes are the highest ever. This makes the total payments to own your new home the lowest ever. Adding green energy features to our homes have made it easy to guarantee heating and cooling cost.
I have never seen the new home market this great for the buyer. My advice would be to take advantage of this time and purchase a new home.
-Ron Formby