Is it a Good Time to Build a Custom Home?
Covid-19 has affected everyone differently. And for those who currently have a stable job and have been interested in constructing a new custom home, it could be an excellent time to take advantage of the incredibly low mortgage rates.
Before the pandemic, the housing market was poised to be in a strong position. High employment, low inventory, low mortgage rates, and a strong economy all put the housing market is a great spot. But since the covid recession hit, everything has changed.
The housing market in 2020, however, is not like the market in 2008. The economic crash that took place twelve years ago was due to the massive amount of subprime loans being given out to unqualified families. The pandemic had a different effect, as before the recession hit, the market was healthy and thriving.
In a study done by Zillow, they found some very encouraging signs that the housing market might not be doomed. They researched how pandemics have had a historical impact on the housing market, and found:
-prices didn’t fall significantly
-the economy bounced back after falling rather quickly
-you might not need to wait to build a custom home
How the Construction Industry is Handling Covid-19
Since the construction industry had been labeled an essential industry, preparedness and prevention to exposure are major components of their response plans. Most building projects can continue.
If you’ve been seriously considering a custom home project, you might be asking a professional custom home building company these questions:
Are your operations back to normal?
What kind of disruptions or delays could be expected in the next few months?
Is there a lull in the supply chain?
Can you get permits and inspections done as per usual?
What is the estimated length of the project?
Are there any new regulations I should be aware of?
Can we meet virtually before, or do you feel comfortable meeting in person?
Once you’ve discussed with the builder about these questions and expectations, you can then decide if it’s the best time for you to build.