Is this a good time to build?

With all the negative news coverage on the economic conditions I'm asked daily "Is this a good time to build?"  Being in the construction industry for well over 45 years, and understanding that building a home is such an important investment, it's a question that requires careful consideration. 

My good friend Scott Moran (also a long-time Dealer and Builder of Wisconsin Log Homes) and I had a great discussion about these economical times and we made some observations to contemplate the big question: Is this a good time to build? 

Looking at it objectively, here are some obvious observations:

• Material prices (outside the scope of North American grown wood forest products) are no longer dictated by the US economy and building trends alone, it is truly a world market.
• The cost of concrete will continue to rise due to world demand over the next 4+ years.
• Gypcrete (Drywall and Plaster) will follow concrete.
• The demand for Aluminum, Steel and Copper is expected to continue to climb and so will prices on plumbing and lighting.
• Petroleum related building products continue to move up in cost - Shingles, PVC pipe, plastics or vinyl on windows, other building products and appliances.

The good news:

• The price margin for lumber and manufactured wood products is the lowest it has been in years. It is considered by most market analysts to be as low as it can get relative to manufacturing costs.
• Interest rates are extremely attractive especially for those with good credit.
• Sub contract labor is soft and consequently more economical than it has been in years.
• Land sales have slowed along with the secondary housing market, so have the prices.
• Hybrid Log Homes are one of the fastest growing segments of the home industry.
• The extremes in the housing market are centered in the areas that experienced rapid over appreciation in years past, such as; regional areas in California, Arizona and Florida. Wisconsin and many areas of the Midwest although slower, are still solid platforms.

To put it simply, we are currently in a buyer's market.  Materials will inevitably continue to rise in the years to come. With the price of labor, lumber and wood at an all-time low, if you're someone who's planning to build in the next few years; it can't get much better than this! Take advantage of the current low prices and enjoy the benefits of living in your dream home now. However, if you're looking to build a spec home and you're hoping to turn around and sell it right away - I wouldn't recommend it. 

We have many clients in various stages of the design build process.  Our business savvy clients are pulling the trigger as they too believe the time and price is right.

Only you can make the right decision for your lifestyle.  Look past the hype, weigh the pros and cons, be objective and make a decision based on your best interest.   

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