Eight Reasons Why Now is the Time to Build Your Dream Home

Posted: 10/26/23

We’ve all heard the reasons why many would-be home buyers are sitting on the sidelines. Interest rates are too high. Prices are going up. And so on.

But contrary to that conventional wisdom, now may be exactly the right time for many people to build a new home.

Let’s walk through eight great reasons why postponing the purchase of your dream home may actually COST you money in the long run.

1. Interest Rates Can Be Managed

The impact of interest rates is, well, over-rated. It’s true that mortgage payments on a new home purchase are higher than they were last year, rising to levels not seen in 20 years, according to the National Association of REALTORS®. But you have other options.

  • First, you can get an adjustable-rate mortgage, which usually comes at a lower rate (currently, a 15-year ARM is nearly a percentage point lower than a 30-year fixed-rate mortgage), according to real estate site Redfin. When rates go down, so will your payments.
  • Second, you can refinance when rates come down. That happened quite a bit the last time rates were lowered. Count on it happening again.
  • Third, like most other home builders, EGStoltzfus has cooperative arrangements with our financing partners, Lancaster Mortgage Company and ENB, who will help you find the best choice for your situation.

2. Prices Will Only Go Up

Historically, housing prices have risen year after year, with the median home price in August rising 7.7% to $396,000 (compared to August 2022), according to Realtor.com. The market continues to be hot in southeastern Pennsylvania and northern Maryland with listing prices rising as much as 30% in some counties.

So, prices are still climbing while you wait for interest rates to come down. And you can count on the fact that they’ll rise even more rapidly when rates do start to tumble. There still is an acute shortage of housing in this country, and we expect a stampede of would-be home buyers when rates stabilize – with a return to bidding wars, sight-unseen purchases, inspections, and frenzied housing searches.

Rather than waiting a year or two for interest rates to come down, think of how much equity you can start building now – factoring in both your monthly payments on your mortgage principal and the inevitable price jump once the floodgates open.

Why wait when you can build now? Maybe you’re looking for small-town living like our Lititz Reserve, located in a community named the coolest small town in America by Budget Travel

3. There’s Limited Inventory of Existing Homes

Rising interest rates didn’t change the fact that there’s still is a severe shortage of houses for sale, with inventories 45.1% below pre-pandemic levels in September, according to Realtor.com.

Will we return to the gold-rush days of 2022 with the pool of eager buyers snapping up homes quickly? It’s quite possible.

Recent trends cited by Realtor.com show homes coming under contract as rapidly as last year. Or even faster.

And you’ll find the average home on the market is 25 to 30 years old and priced the same as a new home. And you’ll still have repairs, no warranties, and the expense of customizing it for your needs.

Building your own home can mean downsizing … or multi-generational living.

Building your own home can mean downsizing … or multi-generational living. The choice is yours, and many EGStoltzfus communities are a great choice for those who are ready to make a lifestyle change.

4. Your Needs Have Changed

Changing family size is one of the main reasons people start looking for a new home. According to the U.S. Census Bureau’s 2021 American Housing Survey (AHS) sponsored by the U.S. Department of Housing and Urban Development (HUD), the average home buyer had a household size of 2.70 people (compared to 2.57 for non-purchasing home buyers).

There are other reasons, as well:

  • You’re relocating, perhaps to take advantage of employment opportunities. To be closer to family. Or to enjoy the pastoral lifestyle of Pennsylvania Dutch country.
  • You’re downsizing, moving to smaller quarters, perhaps even a single floor, to match your needs more closely. And if that means you have enough cash to avoid financing your home, congratulations! You just won the housing lottery.
  • You’re now working from home, and a new home gives you the option to design a workspace that suits your needs.

Whichever scenario fits you, waiting for lower rates may not be an option.

Spacious kitchen with modern appliances

If you build a home today, you can have a spacious kitchen with modern appliances, all under manufacturer’s warranties, like this home in our Warwick Crossings community.

5. You’ll Have Less Maintenance Costs

The average homeowner spends $6,000 a year on maintenance, according to the Housepower Report from Hippo Insurance Services, a property casualty insurance agency.

New homes, on the contrary, have warranties from their contractors and from all appliance suppliers. So, maintenance costs are much less of a problem. That’s especially important for retirees on fixed incomes. Or even empty nesters who prefer to have others do the physical labor they once did.

A farm scene outside this family room

The farm scene outside this family room picture window is one of the special attractions of our Meadows at Strasburg community

Parkside community in the Manheim Township School District

As its name implies, Parkside nestles right up to the Community Park in Neffsville, with its walking path, picnic areas, athletic fields, and playground. And it’s not far from schools in the Manheim Township School District, one of the finest in the state.

6. The Best Locations

As one of the top tourism destinations on the East Coast, Lancaster County welcomes millions of visitors every year – and many decide to make Pennsylvania Dutch Country their home. Over the years, our homebuyers have come from other Mid-Atlantic states like New York, New Jersey, Maryland, and Delaware. And some are former snowbirds who decided that a Florida retirement just wasn’t for them.

EGStoltzfus is one of the premier PA new home builders in the Mid-Atlantic region, with more than half a century of experience selecting sites that offer scenic vistas, the best schools, and convenient access to workplaces, shopping, recreation, and healthcare.

Your family will love their new surroundings. And being part of an EGStoltzfus community.

Today’s new homes feature spacious, open floorplans and rooms with lots of natural light .

Today’s new homes feature spacious, open floorplans and rooms with lots of natural light like the bedroom nook pictured above in our Highland Ridge community. Homebuyers can also add a sunny deck or porch, like the one shown above at our Parkside model.

7. Modern Living at Its Finest

Today’s new homes have modern, open floor plans. Lots of light! More storage and closet space. Roomy kitchens and baths, with contemporary styling.

They’re also energy efficient – saving you money each month on utility bills. Your appliances are under warranty, and you’ll comply with codes. And, if you choose, you can even integrate smart home features like security and heating systems.

Home buyers choose their home’s finishes and design features

At our Design Studio, buyers choose their home’s finishes and design features, which are curated from today’s most popular and trusted brands in residential construction. And our talented Design Studio team guides them each step of the way.

8. Your Home, Your Way

When you can start with the blank slate a new home offers, why bother with the trouble and expense of trying to retrofit an existing home? With our neighborhood homes, you can choose from as many as 16 different floor plans (like our Parkside community, and you’ll work with our Design Studio team to pick your own color schemes along with all the interior and exterior features of your new home. You’ll have your dream home right from the get-go!

Seniors can choose a single-story layout to avoid steps. Or you can customize your new construction to accommodate a handicap. Plus, you get to select the homesite you want.

Now’s the Time… It’s Your Turn

Financial guru Warren Buffett famously advises us not to follow the pack. So, while others are holding back, now may be the absolute best time for you to go after the home of your dreams.

Why wait another year or another five years…when you can enjoy the benefits of a new home now?

Is building a new home the right choice for you? Find out today! Connect with our New Home Consultant online or call us at (717) 537-6968.