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Why Now Is the Best Time to Build a New Home

One of the most common things people think about when they’re getting ready to build a new home is, “Is this the right time to be buying?” Real estate has its ups and downs just like any other market, and if you don’t have an industry background it can be difficult to know just where the market is.

So how do you know when the best time for you to build your home will be?

The short answer is timing can be highly personal, and often the best time to build your home is when you’re ready. Let’s look at some factors that can determine if now is the right time for you to buy.

Real Estate Is Always A Good Investment

As we said, the real estate market can fluctuate just like any other market. However, owning a home is a great investment long-term for several reasons.

Firstly, you’ll always own a home that will be worth something. This means that even in a severe market downturn, you’ll never need to worry about losing your whole investment as you would with, say, a serious dip in the stock market.

Secondly, with every mortgage payment you make, you gain more and more equity in your home. This means the value of your home grows naturally over time no matter what happens, and this value can be leveraged later on if you wish, such as with a Home Equity Line of Credit, or HELOC.

Additionally, the value of your home can be affected by other factors, not just the real estate market itself. For example, if you buy a home in a brand-new or growing community, the value can increase dramatically as demand for the area rises.

In short, real estate is a proven investment that builds wealth over time. There really is no bad time to buy because let’s face it, they are not making any more land. So long as you buy in an area that is desirable then you are almost certain to own something that will be more valuable in the future. The nature of owning a home and paying down the mortgage, also means your equity will naturally rise over time, so you shouldn’t worry too much about trying to “time the market.”

Buyers Market vs Sellers Market

These are terms commonly heard in the real estate industry, but how does it affect the timing of your new home build? They are very much like they sound…

Buyers Market

This is when there are more homes on the market than buyers. This gives buyers more choice and usually more negotiating leverage. However, real estate is extremely stable, it is rare for prices to actually be much lower. Often it just means there is more selection and choices of homes available to consider. You will be able to negotiate a bit more with sellers, but not much.

Sellers Market

Yes, this is the flip side! This is when there are more buyers than homes, homes tend to sell quickly and you have to move fast to get the home you want. Homes are in demand so sellers are likely to get their full asking price and in a short time.

What Does This Mean for Timing?

Honestly, not much! It may sound strange, but when you’re looking to build your own home, whether the real estate market is in a buyer or seller season, isn’t that big of a factor. Granted, if you’re selling your own house and moving up, ideally you want a sellers market, mainly because it makes selling your home faster, but it’s not going to affect the price of your new home.


Waiting to build and lock in at current pricing can affect the price. As time goes on and demand increases, new home prices have historically gone up. This is a situation where getting in early benefits you immensely, waiting almost certainly means you will pay more later.

But What If The Housing Market Crashes Again?

If you’re thinking there may be another housing crash like the one that took place back in 2008, the economic situation these days is far different from the events that led to that crash. That was a result of lending institutions providing mortgages to buyers that really couldn’t afford them, done on a massive scale. Home prices were increasing due to the rise in demand, and it was in no way a sustainable model. Lenders became overwhelmed by homeowners defaulting on their mortgages, and bankruptcies started taking place. Nowadays, new measures are in place to prevent that from happening again. Mortgages are approved for those who can comfortably take them on and home values are holding strong. In many cases, they are increasing as communities and developments grow, with more amenities built around them.

Are You Ready To Build?

The one area where it’s very important to get the timing right is are you personally ready to build your dream home? This means different things to different people, whether it’s being financially ready, being in the right place with your career or family, or simply feeling like your current home just doesn’t work for you anymore.

If you feel like it’s time to move, everything’s in order and you’ve found your ideal community to live in now may well be the best time for you to build your dream home no matter what the housing market is doing.

With record-low mortgage interest rates, there are certainly some good financial reasons to build a new home today. However, when it comes down to it, the decision to build your dream home is a personal one and the best time is when you feel it’s the best time for you.

The amount you could save or lose in waiting for the “right” market conditions might pale in comparison to the amount you could miss out on in equity by waiting too long, or to the amount of happiness you might be foregoing by putting off building your perfect home.

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