Build Today

Today’s buyer’s market puts consumers in the driver seat on the road to homeownership. While the current imbalance between supply and demand works to the consumer’s advantage, it could shift to the favor of the seller at any moment. As a consumer, you should not miss your chance to get behind the wheel and take hold of this advantage before it drives out of your reach.

Most Americans are able to afford a home, but what holds so many back from doing so is the strategic mentality that, “If I wait long enough, prices will go down.” Recent statistics show that 80% of Americans rank price as the number-one factor in home buying decisions.  If this sounds too familiar, it’s time to adopt a new strategy. 

Those who are patiently waiting for prices to go down before they build a new home are headed for a major disappointment.  While the housing boom of 2002-2005 caused activity in the housing market to reach unsustainable levels, the housing demand is currently stabilizing and prices are poised to again rise. An article in the July 2007 issue of Builder Magazine notes that the price of lumber is likely to head back up in the near future. It is also true that the long-term needs for housing continues as Southeastern Wisconsin continues to grow.  Estimates by the Southeastern Wisconsin Regional Planning Commission expect a growth of 344,800 individuals by 2035 (an 18% increase) and an additional 176,600 households in this region by 2035 (a 24% increase).

Midwesterners have already embraced the value of homeownership. In fact, we set the pace throughout the United States. Currently in the Midwest, the homeownership rate is just below 73%.  This rate is higher than the nation’s overall rate of 69% and reigns over the Southern, Northeastern, and Western regions as the country’s highest homeownership rate.

The lesson is this: If you want the best value for investment in a new home, today is the time to build. Prices are being held low and are poised to escalate when the anticipated strong demand for housing returns. Those who believe that buying a new home is too costly underestimate the advantage they have as consumers.  Taking the driver’s seat in this buyer’s market allows your savings to grow into the future through homeownership.

As a homeowner, you also get the additional benefit of growing your savings in two ways. Every year, a greater portion of your monthly mortgage payment goes to the principal, reducing the overall loan amount. Second, your home appreciates over time, making it one of the very best financial investments. Home values in the United States have proven to be a sound investment, and have risen 88% on a national average over the past decade. Not only is homeownership a stepping stone to a future of financial security, it also helps to build neighborhoods and strengthen communities. There’s no mistake about it, the time to build is now.