You may think otherwise, but now actually is a good time to buy a new home. Don’t believe us? For some buyers, it’s ideal — so hear us out. With over 100-years of combined home construction experience, the leadership team at our in-house builder, Preserve Homes & Neighborhoods (PH&N), substantiates the claim. Below are seven compelling reasons that’ll make you think twice about waiting to buy. Read on…
1. Historically low mortgage rates
Mortgage rates are at their lowest rates in history. The current rate for a 30-year mortgage is hovering around three percent, and a 15-year mortgage has seen rates just shy of that. Due to the rock-bottom rates, homebuyers can afford to build a high-quality, premium-grade house for less money. Taking action today is an excellent opportunity to save thousands on a mortgage that helps obtain an exceptional home. But interest rates will not remain this low for much longer. Buyers should lock in now, as rates are predicted to rise in the coming months.
2. Terrific tax deductions
There are favorable tax deductions that come with purchasing a new house. You can deduct your home mortgage interest, including any interest you paid as part of your closing. And if you paid points to the lender as part of your new loan, you can deduct that too. The money you pay in property taxes is also deductible. Depending on your income level, you may be able to deduct PMI (Private Mortgage Insurance) as well. All of the tax breaks add up quickly, so if you’re looking for ways to effectively reduce your tax liability, buying a home can help. (As always, we recommend you contact your tax accountant to determine your qualified deductions.)
3. Sell now while home inventories are low
The hottest “pandemic purchase” continues to be a house. If you’ve got one to sell, you’ll make more on it now than ever before. Home inventory remains at incredibly low levels, and that trend isn’t expected to reverse anytime soon. Selling now means you’ll get top-dollar on your home’s appreciated value. In today’s extraordinary market, you’ll likely get more than that. Once the sale is complete, use the equity toward buying or building the home of your dreams. Note — you won’t have to pay taxes on most of the profit you make when you sell your house. If you’ve owned and lived in it for at least two of the five years before the sale, you won’t have to pay taxes on the first $250,000 of profit. That doubles to $500,000 if you’re married. (It’s best to check with your tax accountant to ensure you qualify.)
4. Get a custom home built exactly for you
Why bid when you can build? As you’ve heard, bidding wars on real estate are nothing short of astonishing. Aggressive buyers are offering well above the asking price. Strategies include all-cash offers, waiving inspections, and allowing sellers to continue to live in the house for months after closing. It’s commonplace for real estate agents to request “highest and best offers” within a day or two of listing. Why bother fighting so hard for a resale? Acquiring one means you’ll likely have to make compromises on your wishlist, not to mention expensive updates and renovations. When building a new home, however, you won’t have to worry about any of that. You’ll get to choose everything: the location, homesite, foundation, floorplan, design, and finishes. As opposed to a resale, you get a brand new, never lived-in home that’s perfectly custom-curated for you…all without having to put up a fight.
5. Lumber prices are going back down
You probably heard the news reports about lumber prices hitting all-time highs, which in turn, have made home prices rise. But, in early June, the cost of lumber began to plummet. As of this writing, prices for lumber in the futures market are down over 45 percent from their peak. It shows that sawmills are finally catching up to demand. As a result, builders are getting caught up too. All combined, the indices and efforts are helping to stabilize home prices for discerning buyers like you. But will the price of lumber continue to drop? It seems likely, but nobody knows for sure, so be ready to buy sooner rather than later in case prices start to rise again.
6. Relief from repairs
Do you often find yourself increasingly fixing more things at your current home? Do you foresee expensive maintenance items in the future? Investing in a newly-built house means you won’t have to deal with the hassle of repairs for many years to come. Since everything is brand new, tackling things like a broken air conditioner, leaky faucet, or replacing a worn-out roof are non-issues. Newly constructed houses also come with warranties that help make life worry-free. For example, a Preserve Homes & Neighborhoods home comes with a generous bumper-to-bumper warranty for the first year of ownership. After that, homeowners receive an impressive 2-10-year warranty. Both establish and prove PH&N’s commitment to building homes with the highest standards in construction and quality.
7. Take advantage of the remote work boom
The pandemic has changed how most companies operate, allowing more employees to work from any location. Remote employees gain more freedom, and companies save money, so remote work is undoubtedly here to stay. If you work remotely, you have the fortune and flexibility to live anywhere you wish. Many are taking advantage of the opportunity and buying homes in resort-style communities. They don’t have to wait to retire to obtain a lux home in the location of their dreams. Here at Bay Creek, most new homes come with state-of-the-art home offices that boast gorgeous views of the Chesapeake Bay or our picturesque, neatly manicured golf courses. What’s more, everyone in the family gets to enjoy incredible amenities and an enriching lifestyle now rather than later. So don’t let location limit you. Now is the perfect time to buy your dream home near the coast, even if it’s a little further out of town.
If you’re toying with the idea of living on the coast, we invite you to discover the magic of Virginia’s Cape. Here at Bay Creek, our thoughtfully designed homes and neighborhoods are set among hundreds of acres of nature preserves, waterways, and interconnected trails — making for a community that offers a unique culture of connection and enrichment. What’s more, our in-house builder, Preserve Homes & Neighborhoods, specializes in crafting sophisticated homes with inspiring architecture, superior craftsmanship, and an absolute commitment to your satisfaction. Don’t wait — find your perfect home at Bay Creek today.