Denver, CO (PRWEB) November 20, 2010
For the first time in months, confidence among home builders for single-family, newly built homes rose in October, according to a national survey conducted by the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), a development that Denver custom home builder Spencer Chase says is good news for people who have delayed building their dream home in the economic downturn.
“More interest from potential new home buyers means there’s more consumer confidence overall, and a better sense that they can sell their existing homes and move up,” says Chase, founder of Chase Custom Homes. “Also it indicates that overbuilt inventories of new homes and existing homes on the market are beginning to wane, and such movement will ultimately stabilize the whole real estate market and enhance values.”
As Chase explains, a buyer looking to move up to a $700,000-plus custom home most likely needs to sell a $500,000 existing home to a buyer who needs to sell a $300,00 property in order to make the deal happen.
“It’s like dominos,” adds Chase. “If one of the dominos falls and doesn’t knock the next one over, and so on, the whole real estate economic cycle comes to a halt. There’s a lot of pent-up demand for home buying at every level, and any indication that confidence is on the rise means those real estate dominos can start falling again.”
According to the NAHB/Wells Fargo HMI, the confidence index for new home builders went up in October in every region of the country, up to 16 points, the same level recorded in June near the end of the new home buyer federal tax credit program which boosted real estate sales for several months. The chief economist for the study, David Crowe of NAHB, says the October index increase shows the housing economy is moving past the lull following the expiration of the tax credits and economic stagnation throughout the summer.
This is by no means an indication that near-depression economies in the national housing market are over, says Chase of Chase Custom Homes, but does point to better days ahead.”
“It’s sort of a ‘Been down so long it looks like up to me’ scenario,” he adds. “But all of my contacts in real estate and mortgage lending tell me people are beginning to explore their real estate options and, except during the tax credits, that hasn’t been the case for going on three years now. This study from HAHB is simply confirmation of a good trend.”
Chase notes that there hasn’t been a better time in years to consider building a custom home than right now due to the increasing buyer confidence combined with a number of other factors. Since the overall housing market remains depressed, mortgage and construction-financing rates are at historic lows, acquisition costs for building sites are the lowest they have been in years, and building contractors and subcontractors are hungry for business and are not only keeping their prices down, but also are finishing projects at a quicker pace than in the go-go years.
“When you put all these factors together – the ability to sell existing properties, and overall great rates and prices for building – a custom home right now represents an unbelievable opportunity to build a dream in an unusually favorable period,” says Chase. “Those who take advantage of this will receive great value in addition to a wonderful new home.”
Chase Custom Homes is a fee-for-service custom home builder, as opposed to the traditional “cost-plus” basis, a philosophy that at once delivers cost savings in development and a builder incentive to finish on-time and on-budget. The firm can handle all aspects of custom home building, from financing and architecture, to site selection and all construction and finish.
For more information on building a custom home, “green” home options, and even expert home renovations, visit http://www.chasecustomhome.com or call 303-204-9254.