As we head into a new year, the economy is uncertain at best. It has been an exhausting few years between the pandemic and the wild real estate market ride of the past several years. Although interest rates are on the rise and the housing competition might be slowing, that doesn’t necessarily mean that 2023 isn’t a great time to pull the trigger and build a custom home in Charleston. These are just some reasons why you might want to make 2023 the year you follow through!
Interest Rates are Relative
We have been enjoying years of historically low interest rates, to the extent that many people forget that just a decade ago interest rates were settled close to nearly 10%. Although rates have risen slightly over the past several months, that doesn’t mean that they are “high.” There are few indications that interest rates will fall again, but there’s also not much saying that they won’t go up again soon. When push comes to shove, it always makes more sense to pay off a mortgage than to pay someone else’s via rent. If you are being swayed by the cost of money, a couple of percentage points shouldn’t dictate your long-term real estate investment desires!
Construction Seems to Be Leveling
Following COVID, there were shortages everywhere, including in the construction industry. Many people who were remodeling, renovating, or building had to deal with delayed delivery times and constant supply chain issues. Plus, the shortages drove up construction prices across the board, including labor costs. There are hopes that the new year will return some normalcy to delivery and the supply chain around the nation, hopefully easing the building industry and potential homebuilders’ worries.
Rent is Sure to Increase
When the cost of living goes up, so does the cost of renting. As we enter another year where the real estate market is slowing, the rental market will likely pick up; when it does, that will mean more competition for rental homes, increasing the rent prices. If you aren’t already locked into a lease, then you might have a hard time finding something you can afford. Or you might have a hard time justifying paying what you can afford, knowing that it is all going to be money thrown away without any investment behind it!
Real Estate is Still a Safe Investment
Many people are having a hard time deciding where to put their investment money. The stock market is too volatile for short-term investing, and everything else seems to be about the same. Although real estate is an investment that might take a little longer to realize, it does allow you to have a tangible asset regardless of what the economy does. If you want to put your money somewhere safe while we ride out the turmoil, then a custom home will retain its value; and if you decide to live elsewhere, you can cash in on the rental market increase in the coming years.
As we head into a new year, many are considering whether they should hire a custom home builder in Charleston, SC. Although it might seem like now is not a good time to pull the trigger, it just might be the only time. At Ragland Homes, if you can dream it, we can build it. Make 2023 the year that you pull the trigger and start living your dream!