Will 2010 be the right time to build for you?

Jim Hassi

Let’s talk about timing—If you started to design your dream home in January, you could still start building in 2010. If you wait until April, you may be building in 2011. Most custom homes take 18–24 months from the start of design until you can move in.

Consider the state of the home building market:

Vacant land costs have come down to levels that are unlikely to last
Material and labor costs are likely as low as they will go
Interest rates cannot really go any lower than they are now
There are several tax benefits which may not last

Where will the economy and real estate markets go? I am not an economist, but I see the following:

Jobs data has been moving in a positive direction for the last couple of months
Retailers are beating their estimates
Housing sales (at least in Western Washington) have been brisk when priced right

The other option is to design your new home now, and be ready to start when you feel the time is right to sell your current residence. I know I can’t predict what will be happening in 2 years, but as an optimist, I believe the housing market will be up from its current state. If you start this spring, you would likely be selling your home in 2011—a market that is likely to be much stronger than today’s.

Need more motivation: A well built new home is much less expensive to operate. A home built to today’s energy code is about 30% more efficient to operate than one built in the ‘80s. Our most recent project has projected energy costs that are 41% less than a new home built to that same code (see Jeff’s article).

If you would like to discuss how to move forward or even tell me why I am wrong, pick up the phone and give me a call or drop me a line via email.

Happy Holidays!

Jim