Wow. Winter felt like an eternity this year, but Spring is here!
Perhaps the feeling of an extended Winter was fueled by the creative new weather terms we heard for the first time, such as Polar Vortex, Snowmageddon, Snowpocalypse, or Nor’easter?! Maybe it was just the extension of snow on the ground and bitter cold temperatures throughout Iowa? No matter what made Winter feel long for you, as Iowans, we know that Spring brings a cherished feeling of renewal and fresh beginnings. Whether it’s establishing a new business, starting a family, setting personal goals, or building a new home, the refreshing feeling of Spring is great motivation to start something great.
As an experienced Des Moines home builder, we’ve found that Spring is always a great time to start a home building project. This year there are a few specific factors that make now an especially great time to build the new home of your dreams. That said, it would be cruel not to share a few, so let’s dive in…
Low Interest Rates
It’s only a number, but the interest rate that you lock in your home mortgage at can save you money. You’ve heard that interest rates are at or near historically low levels and although they’ve increased a bit since 2008, interest rates are still at a level that can save you money off the life of your investment. Lisa Steinkamp, a Des Moines home mortgage consultant with HomeServices Lending, had this to say. “Now is a great time to build your dream house and still take advantage of historically low interest rates. By partnering with Des Moines area home builders like Drake Homes, we’re able to offer outstanding programs that give you several lock options. There is no better time than now to start the preapproval process and have your dream home become a reality.”
There are a number of fixed-rate and adjustable-rate mortgage options, so although you should definitely consult us to discuss what will work best for you, this dynamic graph from BankRate shows the obvious advantages to buying a new home before interest rates continue to rise.
In addition, here are two great ways to take advantage of the partnership between Drake Homes and HomeServices Lending:
- Lock in rates for 90/120/150/180 days to protect from rising rates.
- Ask about our Builder Best® program, which can cover up to $4,000 in closing costs when using HomeServices Lending!
Current Housing Market
While the nation continues to recover from the 2008 housing market crash, it’s been neat to watch our local market really begin to thrive after what most would consider more of a plateau here in Iowa. Drake Homes is building more houses than ever before and can’t seem to build them fast enough! With the healthy housing market here in the Des Moines Metro, you’re able to benefit by building a new home now. As Chuck Stull from Iowa Realty shared with us this week, "The Des Moines area housing market is as good as we've seen it for the last 4 years."
Why is Spring a good time versus a few months from now? Well, it’s likely that the overall inventory of new homes will begin to shrink as people come out of Winter hibernation and start buying the new homes that are available throughout the Des Moines area. Another factor within this equation is that home prices are expected to appreciate by 4.5% in 2014. In fact, based on Iowa Realty statistics, the average new home price in the Des Moines area was $287,000 in February of 2014. That’s up $24,000 from last February and with our country’s home values projected to continue rising, as seen in the Zillow survey graph below, we’d love to help make the most of your money now.
Prime Lot Availability
The population in our Des Moines suburbs is not getting smaller. Along with national awards we continue to collect, more people are starting to realize the jewel of a community we have. With so much outstanding development throughout downtown Des Moines and surrounding suburbs, prime lots for single-family homes will continuously get hard to find.
Thankfully, Drake Homes has a collection of Des Moines Lots that allow you to plug into a variety of great areas like West Des Moines, Urbandale, Clive, Waukee, Grimes, Altoona, Ankeny, Indianola, Norwalk, and more! We understand you want to stay close to all the action, so although we’ll continue to expand our collection of prime lots throughout the Des Moines area, the obvious fact is that the locations of available lots will become farther away from the center of town.
Great Time To Sell Your Home
Spring is a hot time for any housing market. If you own an existing home, you may want to capitalize on the sale of your current home as the inventory of available homes starts to expand into the Summer. This can speed up the overall process and maximize the sale price of your existing home. Along with helping you build a new home, Todd Drake, along with Christy Drake and her 20+ years of real estate experience can help sell your existing home fast. Finding a dedicated home builder that can make life easy throughout the entire process is important.
If you’re renting…well, we all know that home ownership is a better investment than renting. That’s a topic in and of itself, so we’ll come back to that in a future article, but this recent Trulia article might be a quick way to talk yourself into saving close to 38% of your hard earned money by owning a home!
Low-Cost Ownership
If you want to save money, the simple facts on owning a new home versus a used home is hard to deny.
Based on nationwide statistics, did you know the average cost of a kitchen remodel is $58,367? How about a bathroom remodel? That will set you back around $16,552, while adding a new family room to your existing home averages $83,118?!
The cost of owning a new home versus a used home is remarkable. Along with avoiding the hassles and repair costs that come along with maintaining an older home, the tax benefits, lower home insurance, and increased energy efficiency will tilt the scales in favor of your pocket book. We love how our friends at Start Fresh Buy New have organized more fun facts here, but it's simple, a new home requires less time and is all yours. If you believe time is money, we look forward to talking with you about building a new home this Spring.
Final Thoughts
Spring is a beautiful time of year. If building a new home in Des Moines or the surrounding area is something you’d like to think more about this year, now is a great time to start the discussion. We have an excellent inventory in a variety of price ranges right now, and our dedicated team looks forward to sharing in the excitement of doing something great for you and your family this year.
