Build Home Now or Wait to Build

I'm halfway through a new build. The supply issues are no joke and when one group of materials comes down, another goes up. I think it's probably most likely that this is the new "norm." I haven't seen anything to suggest that the prices are going to come down any time soon. With rates going up, it's a betting game at this point. Rising rates could help to bring material costs down, but rising rates also increase the cost of money.

My advice to you would be to give yourself a 15-20% cushion on top of your budget so you aren't wrecked by material fluctuations and change orders. Emphasize communication with your builder on the front end to make sure y'all are on the same page. Also get a construction loan with a higher cap than you think you need if possible.

I have been fortunate in that I've got a very informal, great relationship with our builder and have known him for years, but there have still been some difficulties with sticker shock because of cost fluctuations.

Hardwood flooring has doubled including install that’s huge

We are moving forward, we can keep waiting but with the way things are going, it won't get much better.

You believe these companies who raised prices will lower them? The may lower some but we will never see prices pre covid, why would we, people will still need homes to live in and have to repair the ones they are in so we will keep buying the product.

Now, or 4-5 years out.

We’re headed for a rough patch, fed should have raised rates two or 3 times already and hasn’t. Which means when they finally do it will be a bigger jump at once and idiots will panic.

If you haven’t gotten started by April, don’t IMO.

If you decide to build this year, order the windows BEFORE you think about forming up the slab. When you pour the slab, order your appliances.

Buddy of mine is a custom home builder and he had to start doing this.

We started building in October. We are about 2 months away and out of the woods on framing lumber and most supply chain issues.

We could not lock in the rate when we did the construction/mortgage loans. That will be disappointing as interest has gone up over 1% since we broke ground.

I would wait at this point. I can't believe it will get worse.... but I said that last Summer too and it did.

So far we are around $192 a sft (2860 sft). We had estimates as high as $235 sft. We found a builder for cost plus 10%. I hear that is pretty lucky.

No one has a crystal ball. I would say it is better now than it has been in the last two years. Still high. I am not sure it will go lower or higher. We just built in Lafayette. $197 a sft.