It's spring time in south central Alaska and the snow is melting and the pot holes are emerging. Spring brings longer days and the sunshine that we have missed since late September. It also hearkens the beginning of this years construction season.
Now is the time that buyers are beginning to search out where they would like to build that new dream home. Builders are looking for that perfect spot to showcase their wares. Just the week before Easter the Anchorage Home Builders Association, AHBA, hosted the Spring Preview of Homes. Many of this seasons new projects were on display as well as several of very nice and custom (expensive) homes were showcased.
One of the differences this year is that several of these showcased homes were the builders's private residence. Why is this? As the housing market slowed and in some areas the prices adjusted the cost of new construction did not. It has continued to rise, just like those pesky gasoline prices. Local lending institutions have become cautious, I believe overly cautious, not extending loans to builders so that they can build SPEC (speculate) homes.
Now I believe builders are being just has wary, because they see what has happened to other builders in the lower 48 markets. It does no one any good to over extend themselves. Many would think that this change is a bad sign, and just a glimpse of what is to come. I believe it is a healthy adjustment in the new homes market, but it will make building your new home a little more difficult.
Why is this you ask? Well, for one most consumers that purchase a new construction home, do so when the home is 90-95% complete. All cabinets, colors, and flooring has been selected. Many new home owners want the new home, but they want it now, they do not want to wait 5-8 months for it to be built from scratch.
These changes in our market have slowed the growth in new homes. Buyers that desire that brand new home will have to start at the very beginning, lot selection. Wow, that early you think, yes sir. The builders are waiting for the consumers to come to them. Now is the time to build that custom home, you pick the colors and all. One last point I would like to make is that time does move rather quickly and 5-8 months from now your new home will be finished and it will be beautiful, and it will not be as stressful as you think.
That is if you work with someone who knows what their doing. Do your research, pick a good builder and have a good Realtor along for the ride that understands new construction.
While the construction of a new home may take 5-8 months, it is worth it. The old say, "A Man's Home is his Castle" is specially true when it come to a brand new custom home.
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