5 Reasons To Build Your Custom Home Now

The perennial question I get asked the most often is “Is now a good time to build a custom home in Northern California?”

The answer I can honestly give right now…“YES – now is the best time to build your custom home”

So many factors are involved in the decision to build or remodel a custom home; some emotional and some financial. As of the writing of this blog there are five facts for the Greater Sacramento Area that are strongly influencing my positive answer to this favorite question.

Interest rates are at an incredible low

The interest rates are fairly certain to remain low for the foreseeable future. At least in the next year when a new home will be completed.

The cost of construction is beginning to rise

The recession has wrung out all of the dollars that can be saved in the Cost of Construction. There is a point where labor costs will simply not go any lower or there is no reason for people to be in business. Material costs are unquestionably going up for numerous reasons beyond the scope of this blog. Lumber, concrete, drywall, steel are all seeing increases that are being passed down the pipeline. There is no reason to panic that there is going to be a huge run up in costs, the salient fact is that they are not going to go down anymore than right now.

The cost of land is going up

The deals are going fast in land acquisition. One of the reason financing is loosening up is that the appraisals are coming in that included low lot prices. There is urgency in this area since there are no factors that can drive the cost of land down further on the horizon and in fact everything points to a rapid increase in land in the future.

There is a low inventory of available housing

Clients constantly complain to me that the stock of housing that is out there may appear less expensive than building new, but in reality most of it is dated and needs a major or minor remodel to bring it up to acceptable standards. Worse yet is that most of the stock is showing its age in outdated floor plans. This cannot be changed easily or cheaply.

Lenders are loosening up with their financing

As mentioned above, lenders are making loans happen. Appraisals are coming in where they should be. There are more banks sticking their toes back in the water of construction lending. I have been getting solicitations from banks to get them involved in construction loans. Something that hasn’t happened in five years.

So, if you’re wondering if now is a time to build a custom home or remodel your current home I can tell you that from where I sit, this is the best time in many years. Contact Sacramento custom home builder Allan L. Goulding now and get the home of your dreams.

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