Are you searching for a new home in the Bryan/College Station area? Based on recent events, it is probably a good idea to make your purchase sooner, rather than later.
Here are three of the most obvious reasons why it makes sense to buy now:
1. Unpredictability in mortgage rates. While rates were down ever-so-slightly in early July, sources like the New York Times and many economists are speculating that the Fed will soon raise rates again, marking the third increase in 2018, with additional increases likely in 2019. Historically, raising the Fed rate has led to higher long-term interest rates, such as home mortgages. Purchasing your new home soon will help you avoid further increases in interest rates, which would result in higher monthly mortgage payments.
2. Increases in material prices. In addition to the likely future rise in prices for many construction materials resulting from the recently announced tariffs, material prices have already risen by over 5% during the first six months of this year – including substantial increases in the price of lumber, which is the main component of housing.
In a recent television interview, one of our principals explained how home prices are being driven up by both higher interest rates and rising material prices. In the story that aired on KBTX-TV, Ricardo said, “One of the things we continue to see is material prices going up which means the sales price keeps going up. The other thing is that interest rates have started to go up as well. So, there’re quite a few people that we’ve been talking to for a few months, even a year or two, that are deciding to move forward because otherwise who knows what’s going to happen next year.”
3. Getting the home you want. Building a new home is really the only way to ensure you get exactly the home you want in the community you choose. Local realtors are telling us that the market is highly competitive and that they are seeing multiple offers on resale homes, including cash offers. Rather than getting your heart set on a particular home, only to have it snatched out from under you, visit RNL Homes and let us build exactly the home you envision.
The saying, “Good things come to those who wait” just doesn’t apply to purchasing new home in our local market. In fact, in the current economic environment, waiting is likely to cost you substantially more.
Do you have questions about building a new home in Bryan/College Station? Ask us! Whether you want to know about the financial aspects, the construction process, or designing a stunning home that perfectly fits your family, the team at RNL Homes is here to answer your questions and assist you in making the right choice for you and your family.