How often can you read the newspaper, turn on yourTV , or browse through an internet site without hearingsomeone talking about the current Housing Crunch orCredit Crisis? Well…never, unless you don’t have access to anyof the aforementioned items!
For the past 18 months the housing market in the UnitedStates has been in a decline and economists feel that it’s one ofthe primary reasons for our pseudo–recession. So with all thenegative housing news, the ongoing war in Iraq, the presidentialelections, and all the talk of a recession why should youeven think about building a custom home?
What many people fail to realize is that real estate is like theweather….it’s local. And, luckily for us here in Texas, we havenot been subdued like the rest of the country has in terms ofa housing crunch or economic recession. Although the recentnews of AT&T leaving townwill provide the area with moreinventory for preexisting resalesof homes and it is not good forour economic ego; we must realizethat we still have a verystrong local government thatcontinues to provide incentivesfor businesses looking to SanAntonio as their home base orexpansion city. The current announcementof Rackspace togo Pre IPO and all the BRAC alignments will provide the citywith a much needed shot in the arm in the wake of AT&T’sand Toyota’s recent cutbacks in production.
All things considered, now is a perfect time for anyone consideringbuilding a home to start the process of acquiring landduring a buyer’s market. Several developments have incentivesfor clients looking to purchase a piece of land to build theirdream home. Builders are also looking to expand what theycan provide to their clients in a competitive market and urgingclients to look into locking in their land before the pricesbegin to increase next year.
Unfortunately, it’s inevitable that the cost of material and laborwill increase next year as a response to the spike in oil andgas throughout the country. However, if a client can start todevelop their plans and focus on a builder of their choice, thenthey might be able to get a contract or get started buildingtheir custom home before prices increase any further. Most allmy vendors and subcontractors have told me that at the currentrate of materials, freight, and gas, they will have no choicebut to increase their rates….that means an increase in the costof homes to the consumer.
In addition, many national vendors are running specials oncurrent inventory they might have overstocked, and clientsmight be able to offset some costs through competitive shopping.Your builder can assist you in looking for these cost savingswhen building your custom home.
Although real estate is local, we can’t hide from the fact thatlending practices are getting much more strict for all types ofloans: mortgage, interim construction, and commercial. Besure that you have a sufficient down payment, your credit isintact and up to par, and that your builder has a solid reputationwith their financial institutions. Local lenders know thatwe continue to have a strong housing market, and althoughwe are not breaking any housing records as was the case in2005 and 2006, we continue a steady appreciation of affordablehousing throughout the area.
As some areas in the country are getting battered more thanothers, we continue to be healthyand grow at a conservative pacethat tends to eliminate any bubblesand bursts. So, if you arelooking for that rock bottom dealor that once in a lifetime price ona home, you’re not going to findthat here in San Antonio.
Be attentive to all the incentives,do your research on thebuilder of choice, and take advantageof the cost savings that thenational housing crisis can provide. Just remember, if you areon the fence waiting for that steal on a custom home, you won’tlikely find it.. Take advantage of any savings you can now, becausealways remember that every market has its cycles andthey tend to last anywhere from 12 to 24 months before itstarts to take a turn again.
Good luck and please feel free to contact us if you have anyquestions regarding your custom home building needs.
