New home construction is ongoing in Oklahoma and across the United States. And it shows no signs of slowing down any time soon.
Finding the right time to buy a house can feel daunting. If you are asking yourself, “Should I build a house now or wait,” there are many personal and real estate market factors to consider. These include:
1. Why You Want a Home
Consider the here and now and what you want your life to look like in the next five to 10 years. This will help you figure out what you want from your dream home.
Here are questions to help you identify the features you want out of your ideal home:
- How many people will live there? This helps you decide on the number of bedrooms and bathrooms you’ll need.
- Do you work from home? If so, you may want a home where you have enough space to set up an office.
- Do you want to host dinner parties and other social events? For those who want to do so, look for a home that offers a large kitchen or dining area.
Don’t forget about storage, either. If you have many large, bulky items, you’ll want a home with spacious closets, a garage, and other storage areas.
Along with storage, account for your personal style. When you build a new home, you may be able to personalize your cabinets, countertops, and other aspects however you’d like.
2. Your Budget
Make a budget for your home purchase. It often helps to use a free online home budget calculator to help you determine what you can afford.
With your budget, aim high when accounting for costs. Overestimate your home construction costs to avoid stretching yourself too thin financially once your project gets underway. You can also create a contingency fund to help you cover any unforeseen home construction expenses.
Be open to compromises with your home. It may be beneficial to make a list of home must-haves and wants. This can open up your search to homes that don’t necessarily have everything you want but still offer great value.
Keep in mind that it may take a few years to save money for a down payment on a home. But doing so may be a good idea if you are focused on getting a home that has everything you want as quickly as you can.
A home builder may offer financing through preferred lenders to help you get your project off the ground. Ask a builder about its preferred lender financing options and how they work, as many offer financing incentives that can make a home more affordable. You can then decide if any of these options line up with your expectations.
3. Mortgage Interest Rates
Track mortgage interest rates carefully. These fluctuate constantly, and when you decide to move forward with new home construction may have far-flung effects on your interest rate and how much you ultimately pay to complete your project.
According to Freddie Mac, the average interest rate was 6.64% for a 30-year fixed-rate mortgage and 5.19% for a 15-year fixed-rate option as of February 8, 2024. At this time, Freddie Mac also pointed out home affordability remains an issue for many buyers due in part to elevated mortgage rates.
Some experts are predicting mortgage interest rates will drop. Others say these rates are likely to remain in the same range in the foreseeable future.
You cannot control mortgage interest rates, but you can monitor them regularly. And if you see rates decline significantly, it may be in your best interests to capitalize on them before they rise once again.
But keep in mind that building equity is the most important thing in a home. Choose one with a total mortgage and monthly payment you can afford and understand that long-term you can always re-finance if the rates drop.
4. Home Construction Timeline
Home construction opportunities may provide viable alternatives to browsing the current real estate market.
In December 2023, the Census Bureau reported housing starts rose 9% year over year. This shows home builders were better equipped to meet demand for new construction than they were one year earlier.
Of course, even if many of today’s builders need less time to begin projects, there’s still a timeline for new home construction. With a new home build, it may be seven to eight months from your purchase date to when you’re able to move in.
To speed up this process, you can buy a move-in-ready home. If you do, you may be able to finalize your purchase in about 30 days.
Is It a Good Time to Build a House?
Think about what you may get out of your construction project, and you may discover that there’s no such thing as a “bad” time to build a home.
The process to buy new construction is simple, regardless of when you begin. You have the option of going with a personalized build or move-in-ready home. Check out both options, and you can pick one that aligns with your personal style and budget.
Finally, with new home construction, select the right builder.
Your builder should have a wealth of new home construction experience and use materials from industry-leading brands in its projects. It’ll also keep you up to date as your project is completed and make sure you get the home you want as soon as possible.
Kick Off Your New Home Build
As one of the top home builders in Oklahoma, TimberCraft Homes offers personalized and move-in-ready homes for sale in Oklahoma City and its surrounding communities.
Contact TimberCraft Homes to build a new home in the Oklahoma City area.
