From the increased tempo in our sales offices over the past 3 months, we can tell something is up. Have you adjusted to the new economy? Are you tired of waiting? Have you given in and given up on the price of your home and accepted the low offer just to get to a new lifestyle home and community? We don’t know for sure, but what we do know is that the market is ripe for those who can pick buy right now.
Your experience tells you the economic environment will be changing soon, and not for the better. Interest rates will rise, material and labor costs are already increasing. Accordingly, the cost of building a low-maintenance, easy-living ranch home is going to rise as well.
Interest rates have been low for an extended period of time and they are poised to rise. Not only will a rise in interest rates affect the affordability of a home with a mortgage, it will increase the cost of building that home. Often financing the construction of a home, builders will be required to borrow at a higher rate and will pass the cost along to the buyer. Mature buyers who need to sell their home before moving into a more suited ranch home will once again struggle to find buyers who can afford payments with a higher interest rate.
The beginning of 2011 saw much of the United States affected by damage from tornados, floods, and fire. Communities are starting to rebuild, increasing the demand for building materials. The predicted storms from the 2011 hurricane season will add to that demand. Japan is also beginning major reconstruction programs that will create an international market for even the basic building supplies like framing material and plywood. While storm damage keeps economies going, it will put pressure on the supply of building materials. The old “supply and demand’ rule will come into play, rising prices.
Optimal interest rates and new home pricing have meet a ‘sweet spot’ right now. Many mature buyers recognize this and are taking action. No one really knows how long this sweet spot will last. If you’ve been waiting, this is what you have been waiting for. Visit our Atlanta Active Adult Communities website today and find the home and lifestyle you have been dreaming of.