It seems things (and homes) are getting more and more expensive. The cost of a gallon of gas is up, the price of groceries is getting out of hand, and rents are climbing at a steady rate. To add insult to injury, home prices are still climbing in the DFW metroplex. This is great news for sellers, but what if you're looking to buy?
According to this article from the Wall Street Journal "the average interest rate rose to 7.09%, its highest level in more than 20 years". Higher interest rates mean you have less buying power.
If you trust the experts at Bloomberg Financial "a recent surge in US mortgage rates has pushed home affordability to its lower point in four decades".
If you want to stop making your landlord rich and buy a home what are your options?
1. You can call up your rich uncle and ask him to cut you a check. However, if you're rich uncle is, A. Not returning your calls, or B. Not actually rich, you'll have to look at option 2.
2. Give a serious look at new constructions homes. New construction is the cheat code for getting an affordable home.
Wait, what? If existing home prices are going through the roof, why even consider new construction? Well, there are a couple of reasons:
1. Material cost have dropped significantly since the pandemic. A 2x4 and a sheet of plywood will no longer cost you a kidney.
2. Most large builders have their own in-house lenders. Their lenders can afford to discount rates, give closing cost assistances, and other benefits due to their large number of transactions.
3. Builders don't like to sit on inventory, so they're likely to lower the sales price if they don't already have a buyer lined up.
4. Most importantly new construction is actually CHEAPER than existing homes by almost $12,000 on average in the DFW metroplex. The Dallas Morning News dropped an article expanding on the concept recently.
So now you know the WHY, its time to work on the HOW. If you'd like to learn the ins and outs of buying a new construction home contact me TODAY to set up your free consultation.
