The Rising Cost of New Homes

Over the last few years, homebuyers have been able to leverage the value of low interest rates for mortgages. As the economy has rebounded, so have the mortgage rates! The longer you wait, the higher they will climb. In addition, Homes By Taber—like all home builders—has seen an increase in the price of building materials. Both of these factors contribute to the rising cost of new homes. If you’ve been considering a move, don’t hesitate. Buy now to afford the home you want, before the home you want is no longer affordable.

What $1,000 buys you now, and later

Here’s an example. Let’s say your budget allows you a $1,000 monthly mortgage payment, including property tax and insurance. With good credit, you could get a 4.5% interest rate, and you’d be eligible to buy a new home for up to $245.000. In the Oklahoma City region where Homes By Taber builds, $245,000 would get you a beautiful home in a nice neighborhood, like Kelly Lakes in Edmond, The Waters in Moore. Homes By Taber is also about to start building in the resort-style new home community of Woodland Park. This new construction is coming to East Edmond later this year, and a new home in Woodland Park is definitely within your $1,000 monthly mortgage budget.  

At least, for now. 

If the interest rates go up by just ½%—which appears likely in the coming year, according to rate forecasts—your monthly budget of $1,000 for a mortgage payment will cut your purchase limit to $235,000. That means you compromise with a smaller home, something older, or a neighborhood that isn’t quite up to your dream home expectations.

Also consider that the $245,000 home you can afford now might not be $245,000 if you wait too long. The increase in building materials could soon affect that price. So, not only do you lose the low interest rate, but you’ll also miss out on the great home that you can currently afford—if only you had taken action toward buying a new home.

Ask yourself, “Why am I waiting?” 

If you don’t think you’re financially ready to buy a new home, talk to a professional lender. We’ve had homeowners who were very pleasantly surprised—emphasis on “very”—after speaking with our preferred lender. These professionals know all of the mortgage programs available and they can explore and explain your options.

We also have a wide selection of brand new, quick move-in homes, starting at less than $200,000. These are move-in ready, covered by our builder’s warranty, and available for a quick close. Talk to us about these opportunities to see how much home you can afford when you choose Homes By Taber!

You can even use our “trade up” program so you don’t have to worry about selling your home. We want to make the purchase of a new home as easy as possible.

Have you decided to postpone the purchase of a new home until the end of the school year or something else on your calendar? Think about what the delay will cost you in terms of the home you can afford to buy when “the time is right”. In addition, if you decide to build a new home, you need to allow a few months before you can move in, so when the right time comes, you’ll be ready with a brand new home.

The cost of hesitation

Consider your options. Wait to buy your new home, for whatever reason, and be prepared to pay a higher interest rate on a home that will be more expensive than it is now.

Or…

Talk to us at Homes By Taber. Our sales consultants and lenders are ready and willing to help you determine whether you should buy now or wait. At least, you will make an informed decision, rather than rely on speculation. Take a look at our new home construction throughout the Oklahoma City metro region. Browse the floor plans, which present many ways to personalize them for your own style. Then let’s talk about how you can take advantage of the current interest rates and housing prices so you don’t have regrets later.