Is Now the Time to BUILD or REMODEL?

In our humble opinion, the answer to whether you should build a new home or remodel your existing home is yes! We’re not really hedging our bets by saying build or remodel. The fact of the matter is that one answer isn’t right for everyone. As for the timing, there are several things that make this a good time to build or remodel.

There are increasing signs of life in the housing industry. Nobody is predicting the next building boom just yet, but there are indications that we’re in for an upturn. One sign is that on a national level, existing inventory of new homes in June of this year is at a six-month level. Nobody has ever seen inventory that low.

What that means is that when purchases of new homes go up (and they will at some point), builders are going to be very busy. There’s a good chance that the timely construction of a new home will be limited to those who get in line first. This will affect renovation projects as well because a lot of builders (us included) are involved in both building and remodeling. Another thing that will likely be affected is price. We all no what happens when demand exceeds supply. Prices go up.

There’s another (financial) reason why now is a good time to build or remodel. Interest rates are still very low. Not only will the cost to build or remodel your home probably increase down the road, but your cost to borrow the money will probably increase as well. And just a few percentage points difference in your mortgage rate can add up to thousands of dollars in just one year.

Financial reasons aside, one of the most significant reasons to remodel or build right now is that you will actually be able to enjoy your investment. When you build a new home or remodel your existing home, you get to create it the way you want it. You have the ability to shape your home to fit your lifestyle. You build in the things that make you comfortable, secure, and content. There’s something special about sitting around your new or newly remodeled kitchen with friends—or curling up in your new or newly remodeled family room that gives you a deep sense of satisfaction and well being. Curling up with your investment portfolio just isn’t quite the same!

Are the financial markets going to improve and stabilize? We’re not financial experts (and those who claim to be aren’t looking so smart at the moment!), so we won’t venture a guess on that. Will the housing market turn around? There are signs that indicate it’s headed in that direction, but there are no guarantees.

But if you want to invest in something that historically has paid exceptional dividends—and will provide you with years of comfort and enjoyment—now is a good time to build the home of your dreams, or to turn your existing home into the home you’ve always wanted it to be.