Should I wait to build?

Posted: February, 29, 2024 | Categories: Tips & Trends | Benefits of Wyoming

simple piggy bank standing atop a pile of dirt with a blank background. There is a hint of glinting diamonds showing through the dirt

Many have become increasingly concerned over the cost of a new home and are asking, “Should we wait to build a new home?”  Volatile markets are always a cause for concern, and buyers are right to proceed with caution to make sure they are making the best financial decision for their future.  Here are some factors to consider when deciding whether now is still a great time to build a home in Southwestern Wyoming.

  1. Supply – Not only are many building materials at a higher cost than they were in recent memory but used homes listed for sale are also at an all-time low nationwide.  Local homesites are extremely limited and are an increasingly valuable resource.
  2. Demand – On the other hand, demand for new housing is at an all-time high across the country. There is a large-scale reshuffling going on with buyers looking for homes that meet their needs better, as well as leaving crowded overpriced cities and moving to more rural areas.  The bottom line is there are just not enough houses in the areas where people now increasingly want to live.  We are experiencing this phenomenon in Southwestern Wyoming with more buyers interested in coming to share our open spaces, clean air, and lifestyle.  
  3. Inflation – You may feel the rising cost of living is already taking a bite out of your purchasing power, and even if inflation continues at a healthier rate, it makes more sense financially to go ahead and pay the interest on a home than to put your money in a savings account! 
  4. Quality of Life – If you are reading this article or considering a new home purchase in the first place, then chances are good that you have a serious housing need.  You either don’t have enough space, the right kind of spaces; or you want to move to this area for a job opportunity, to be closer to family, or simply to enjoy the quality of life we enjoy in Southwest Wyoming.  In considering all these factors, it is important to consider the value of your quality of life.  How long can you bear to stay in your current housing arrangement before something has to give?

In summary, the combination of the above factors suggests to us that you may not truly benefit by waiting for the economy to be better, the interest rates to fall, the kids to get out of the house, or some other squishy, unpredictable factor. (Yes, we know the kids don't always leave!)

The good news is that even though you will pay more for a new home today than you would have a year ago, it will be worth the additional cost over time. Home prices have more than doubled in the last 20 years.  In fact, you can examine any 20 years in US history and see that homeownership is still one of the strongest investments available. 

"Games are won by players who focus on the playing field—not by those whose eyes are glued to the scoreboard. If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so."
 - Warren Buffett

If you can afford a new home and it would improve your quality of life, my advice is to make this investment now. Call us, please. Let's get you into a wonderful new home where you can feel happy paying the mortgage every month because you are truly investing in yourself both financially and emotionally. The whole team here at Smart Dwellings is ready to build a home just for you and we would love to be of service.

P. S. Does this article look familiar? That's because it's an updated version of our 2021 post. You can't buy in the past though, so the best time is now.

Tags: Budget | Estate | Homebuying | Homes | Housing Industry | Millennials | New Construction Homes | New Home Builders | New Homes | Reasons | Strategy | tips
Author: Beth Lemon