Goodbye winter, hello spring! It’s an exciting time of year at Kootenia Homes. 2017 is shaping up to be one of the best years home construction has seen in over a decade. Are you looking for a home? Here are 3 reasons you should consider building a home with Kootenia this year.
1. BUILDER CONFIDENCE IS AT A 12 YEAR HIGH
Confidence among U.S. homebuilders has soared, as sales prospects improve despite rising mortgage rates. According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), the builder sentiment gauge rose to a level of 71 in March, it’s highest reading since June 2005. And the Twin Cities is no exception. According to the Builders Association of the Twin Cities, municipalities around the metro area issued 520 permits to build 915 houses and apartments in March, the highest number March has seen since 2006.
Housing construction is being driven by several factors. The economy and labor market continue to grow at a steady pace, and as a result there is an increasing demand for housing. More millennials are getting jobs and moving out of their shared dwellings. Waves of baby boomers are looking to downsize to a simpler, more mobile lifestyle. These two groups alone are driving up demand, and rent is only increasing. This is causing more people – even millennials – to consider building a home. Dave Siegel, the director of the builders association, noted that millennials are finally moving into the home building market. This is another good sign for home construction in 2017.
2. PHASE 6 NOW OPEN IN RAPP FARM
We’ve just wrapped up with this years Spring Parade of Homes Tour and have a number of gorgeous custom homes underway. One of our new models is in the beautiful neighborhood of Rapp Farm, located in North Oaks. The final phase of the Rapp Farm neighborhood is now open, and lush, wooded lots, many of which back up to a gorgeous conservation area, are available for you and your family! The picturesque surroundings are the ideal canvas for your own custom design. See available lots here.
3. COST WILL ONLY INCREASE
Prices will inevitably continue to rise. Corelogic’s latest Home Price Index report shows that home prices have appreciated by 6.9% in the last 12 months. Corelogic also predicts it will increase at a rate of 4.8% over the next 12 months.
Mortgage interest rates are also projected to increase. Freddie Mac shows rates for a 30-year mortgage have remained around 4% for several months. However, Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are all predicting an increase by at least a half a percentage point within a year. If you are thinking about selling or buying a home, act now! Waiting may only end up costing you more.
Builder confidence is the highest its been in more than a decade. The final phase of Rapp Farm is now open. Home prices and mortgage rates are only projected to rise. These are just a few of the reasons you should consider building with Kootenia Homes. Don’t wait; take advantage of the opportunity to build your dream home today!
Contact me to learn more or to schedule a private tour.