If you're looking for a new home in 2021, you're certainly not alone. A housing shortage means that demand exceeds supply and that there are more buyers than sellers in the market. As a result, some potential buyers are choosing to build their own homes. This allows them to fully customize their homes.
Our real estate agents explain what you need to know when building a home in 2021:
- It may cost more than you think.
Building a home may cost more in 2021 than in previous years. That's because builders are experiencing shortages of essential materials. More than 90% of builders surveyed by the National Association of Home Builders say they've experienced shortages of plywood, with almost that many reporting a shortage of windows and doors. This drives up the price for these materials as well as the cost of building a home.
- Interest rates are still quite low.
If you need to obtain financing for your new home, the news is good. Interest rates have been around 3% for a 30-year fixed-rate mortgage in the summer of 2021, which is historically very low. Although rates can sometimes be difficult to precisely predict, experts expect them to stay steady or rise only slightly by the end of the year, which makes financing a home build (or buying an existing home) easier financially.
- Factor in the cost of land.
Don't forget to factor in the cost of land if you're planning to build a home. Even if you already own the plot of land you'll be building on, you'll probably want to budget for some improvements. These can include a driveway, landscaping, and outdoor structures.
- Consider healthy home features.
Homeowners have placed a higher priority on healthy home features in the past few years, and this trend has grown even more since the COVID-19 pandemic. Consider faucets controlled by motion sensors and smart home devices that minimize the number of times you'll touch surfaces like light switches and door locks. Features like low-VOC paint and an efficient HVAC system and insulation that helps improve indoor air quality are also important healthy home features.
- Look beyond the open floor plan.
Open floor plans remain popular, but many homeowners now prefer a more formal layout. Think about what your family likes to do before deciding on a layout. If you like to entertain, for example, an open floor plan may better suit your needs. But if you have a family member who works at home or would like your home to have more private space, a more formal layout is probably the way to go in your new home.
- Patience and flexibility are key.
You'll usually run into some unexpected delays and issues when you're building a home, so you'll need to be patient as well as flexible. This is particularly true in 2021 since shipping delays and material shortages are common. If you approach the project expecting some delays and are flexible about some of your decisions, you'll have a much better experience and be under less stress.
Contact us to find out more about the local housing market and Cedar Park homes for sale. If you decide to build your own home, we can help you find the land that meets your needs and share information about specific neighborhoods and other areas.