Why Now Is the Perfect Time to Build - Especially in the Carolinas
Been waiting for ideal timing to start building your dream home? Good news — the time is now!
In the last three years, the real estate market nationwide has fluctuated dramatically — but few markets have been as competitive and explosive as top cities in the Carolinas like Raleigh and Charlotte. For those who have been eager to move to these cities or current residents who are ready to become homeowners there, the prospect of entering such a competitive market has likely been overwhelming.
Experts don’t expect the Carolina housing market to cool down—so if you’re looking to become a homeowner what should you do? We sat down with Madeline Stephens, Head of Sales at Atmos, to discuss why the current market conditions make right now the perfect time to build.
More Land Options
One of the largest challenges for those who chose to build their homes in the last few years? Finding a buildable lot in their desired location. The competition for homes extended into high competition for land as well. Now, just as there’s a bit less competition for existing homes, our Land Acquisitions team is seeing slightly less competition for land.
However, this lull isn’t expected to last as interest rates continue to fluctuate and large companies continue to open headquarters in the Carolinas. You can’t make more land, and this is likely the least competitive time to buy a lot where you truly want to live!
Strong Appreciation Trends
A primary cause of the dip in competition for homes and lots? Interest rate increases. These increases have driven some buyers to the sidelines to wait until they drop again. However, in hot markets like Raleigh and Charlotte, it won’t pay to wait. Interest rates are up from what they were six months ago, but less than they will be in six months—and still historically low.
In North Carolina, homes are appreciating at such a rate that waiting for interest rates to go down will likely mean you still end up paying more, because the cost of land and existing homes is rising steadily and continuously. Getting started with a custom build sooner than later is likely to save you money in the long run thanks to the strong home value appreciation trends in the Carolinas.
Building Equity
Another aspect to keep in mind is that when you're building, that's your best chance to give yourself some instant equity. If you buy an existing home, you might end up waiting a while for that to appreciate. However, if you can buy a piece of undeveloped land and then develop that land, you’re often building in some equity right away, plus you’re avoiding the bidding wars that often hike prices way up.
Expected Population Growth
North Carolina has always been a destination state, and even more population growth is expected in the next few years. Large companies such as Google, Amazon, and Apple are opening headquarters in North Carolina in the next few years, meaning professionals will continue moving here at high rates. Homes in the Triangle area are expected to see tremendous increase in value over the next five to ten years, making now the perfect time to build and take advantage of that upcoming growth.
More Buyer Options
The market has shifted a little bit. Buyers today have more options than buyers had three months ago, let alone a year ago. In the Carolinas specifically, we’re seeing unique situations with many of our clients; it is cheaper to build exactly what you want versus getting in a bidding war on another house that may have things that you don't love—that you didn't pick. Maybe you pay for a home with a kitchen that's completely remodeled, but you don't like the colors, and then have to go in and change things. What's unique about custom building and working with Atmos is that we walk you through how to get exactly what you want—appliances, colors, layout and more. Without having to compromise, building your dream home from the ground up can be cheaper than buying an existing home and spending 10s of thousands to remodel everything you don’t like in the home.
The other good thing about this market shift that we've seen over the past couple of months is that things are slightly less competitive, which is particularly important to custom building in terms of land. Now, there are more land options, meaning that our team is able to help you identify the best piece of land to build your house on, and you can potentially get that land without having to be in a multiple offer situation.
As new employers fuel the already-hot fire of North Carolina’s status as a destination state, land and home prices will only continue to appreciate as buying and building become more and more competitive. Now is the perfect time to take advantage of a relative slowdown and begin building the custom home of your dreams. With Atmos, it’s never been easier! Get started today.
