When you’re deciding whether to build a new custom home, it’s normal to have a million questions running through your mind, from the projected timeline and new construction costs to options and ROI, to the most pressing of all: Should you build a house in 2024?
At Heartland Builders, we believe that building your dream home should be one of the most incredible experiences of your life. That is why we make sure that every part of your journey, from beginning to end, is stress-free and enjoyable! It’s also why we make sure that you feel comfortable by answering your questions about exactly what is involved.
In light of current market conditions, it’s understandable to wonder about the uncertainties of new home construction costs. Based on what we’re seeing, our team of experts here at Heartland Builders believes that 2024 will be a good time to build your custom forever home. We have seen pricing and interest rates stabilize, and there is talk that the Federal Reserve may decrease rates this year instead of raising them.
At Heartland Builders, we’ve always believed that building a custom home is an investment in your family’s lifestyle and should be looked at as a long-term financial and lifestyle decision.
Unlike many builders, we don’t start every day with the goal of building the cheapest house possible. Instead, we want to build the best homes our clients can afford. We evaluate both cost and value in the construction of our homes. From their distinctive architecture to their unparalleled craftsmanship to their attention to detail, custom Heartland homes are as unique as their owners, creating an immediate and unparalleled sense of value.
Although there may be short-term fluctuations in a home’s value, your home’s value is most likely going to increase when looked at as a long-term investment of five or more years. So if you are interested in building your “forever” home, a custom Heartland home is a great investment, financially and emotionally.
How Will New Construction Costs Impact My Build?
Over the past three years or so, the homebuilding industry has experienced a variety of material shortages and cost increases that have played havoc with pricing. The GOOD news is that construction cost increases have begun to slow, according to the National Association of Homebuilders (NAHB). Even BETTER news is that lumber has fallen from its large spike in 2022. Our outlook: if you are ready and able to build, then now is the best time to do it.
What’s nice about working with Heartland Builders is that the material costs are locked in before construction even begins, so there will not be any surprises down the road if the price of something goes up. If you plan on living in your home for longer than five years, chances are you will benefit from price appreciation and the enjoyment of your family living in your new home during that time.
In addition, though current interest rates are higher than they have been, there’s always the option to refinance in the near future – possibly as soon as six months to a year after you close on your home. If interest rates continue to rise, you will be glad you built now! If interest rates decrease, as long as your credit stays in good standing, banks will be willing to work with you to refinance your loan. (Remember, banks almost always allow for refinancing – they make money off the closing costs of the new loan.) Overall, your new custom Heartland home will be a wise investment now and in the future.
Contact Heartland Builders: Your Custom Home Builder Ready to Serve You!
In this tough real estate market, it is more important than ever to have a team of experts that are your guides on your custom-built home journey. As a respected custom home builder, Heartland Builders would be honored to be your guide! Contact us today to evaluate your potential land, discuss financing options, and start on the design of your forever home!
Based on what we're seeing, our team of experts here at Heartland Builders believes that 2024 will be a good time to build your custom forever home. We have seen pricing and interest rates stabilize, and there is talk that the Federal Reserve may decrease rates this year instead of raising them.
By 2024, prices could be 25% to 28% higher than they would've been compared to a pre-2020 trajectory, which will make building a budget-friendly home a real challenge for some. Material and availability cost predictions for 2024 include: Roofing: Availability will decrease, but pricing should remain stable.
If you intend to build a new home, you should first ask yourself how much your max budget is and what items are non-negotiable. $250,000 is more than enough to build a new house; however, it is very easy to get swept up in the excitement of home building and spend more than anticipated.
The good news for anyone looking to build a house for $100K or less is that there a plethora of designs to choose from. The type of small home combined with cost-cutting preparations make this a viable option.
Contractors remain mostly upbeat about the construction industry's prospects for 2024. They expect demand to grow for most market segments. Most firms plan to add new staff and to make new or continued investments in information technology.
Lumber demand correlates to the housing market, as single-family homes use approximately three times more lumber than multifamily. Analysts forecast that lumber demand will grow by 1.7 billion board feet in 2024, a 3.4% increase from the previous year.
When discussing the most expensive part of building a house, it all begins with the foundation. The foundation acts as the bedrock on which the entire structure rests. Depending on the type of foundation chosen, costs can escalate significantly.
For this budget, you could build a large three-bedroom home, which typically costs $300,000 to $600,000, for up to 3,000 square feet. You'll sacrifice a few amenities for square footage, but you can always add them in later when you have additional budget.
The average cost to build a house in California is $360,000 to $1,500,000, not including the cost of land or site prep. New home construction costs in California range from $200 to $600 per square foot, depending on the location, house size and design, and the materials, finishes, and fixtures you choose.
That being said, there are still far more buyers than sellers even with this negative first-time homebuyer news, meaning that there will not be a market crash likely. According to MCT housing market experts and other experts in the field, the likelihood of a real estate housing market crash in 2024 is low.
Many prospective homebuyers chose to wait things out in 2023, in the hopes that 2024 would bring a more advantageous market. But so far, with mortgage interest rates still relatively high and housing inventory stubbornly low, it looks like 2024 will remain a challenging time to buy a house.
Bottom Line: Is 2024 a Good Time to Buy a House in California? Yes.This is the best time to buy a house in California. With the current trend in the CA housing market, you'll find better deals on your dream home during Q2 2024.
April, June, and July are the best months to sell your house in California. The median sale price of houses in June 2023, was $796,400, which is expected to grow more in 2024. However, cities like Arcadia and San Mateo follow an upward trend throughout the year.
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Although there may be short-term fluctuations in a home’s value, your home’s value is most likely going to increase when looked at as a long-term investment of five or more years. So if you are interested in building your “forever” home, a custom Heartland home is a great investment, financially and emotionally.
In addition, though current interest rates are higher than they have been, there’s always the option to refinance in the near future – possibly as soon as six months to a year after you close on your home. If interest rates continue to rise, you will be glad you built now! If interest rates decrease, as long as your credit stays in good standing, banks will be willing to work with you to refinance your loan. (Remember, banks almost always allow for refinancing – they make money off the closing costs of the new loan.) Overall, your new custom Heartland home will be a wise investment now and in the future.
