Are you contemplating whether to buy a new home in Kansas City now or wait? It’s a common dilemma faced by potential homebuyers, especially considering the rising interest rates and construction costs. However, in this blog post, we will explore why waiting might not be the best option. While it’s true that interest rates and building costs have increased, there are compelling reasons why you should act now and not postpone your home purchase. With no guarantee of prices going down and a high likelihood of continued increase, seizing the opportunity now could be the best decision you make for your future.

Hearthside Homes of Kansas City is here to provide valuable insights to help you make an informed decision. With over 30 years of experience in the real estate industry, we understand the dynamics of the market and the factors that impact homebuyers! We’re a semi-custom home builder based in Liberty, Missouri. Since 1987, we’ve built nearly 2,000 long-lasting homes. We currently build in the Kansas City, Parkville, Kearney, and Liberty areas. Our homes range in price from $350k-$700k. You can check out our available listings here. Don’t forget to check out our gallery! Additionally, you can click here to learn more about the communities we build in. We hope this blog post helps you decide whether or not you should buy a new home in Kansas City now.

The Rising Real Estate Market

One of the primary reasons why waiting to buy a new home might not be a wise choice is the continuous upward trajectory of the real estate market. Over the years, property prices have consistently shown an upward trend, driven by factors such as population growth, limited supply, and increasing demand. By delaying your purchase, you run the risk of paying a higher price in the future. The longer you wait, the more you’ll likely have to spend on the same property.

While it’s understandable to hope for a downturn in prices, there’s no guarantee of such a scenario. Real estate markets can be unpredictable, and trying to time the market perfectly is a challenging task. Instead of waiting for prices to potentially drop, consider the potential appreciation of your property over time! By purchasing now, you position yourself to benefit from the market’s long-term growth, building equity and securing your financial future.

The Impact of Rising Interest Rates

Another factor that often discourages potential homebuyers from taking the plunge is the increase in interest rates. It’s true that rates have risen from their historically low levels, making mortgages slightly more expensive. However, it’s important to consider the bigger picture. Even with the recent increase, current interest rates are still relatively low compared to historical averages. Did you know thirty-year fixed mortgage rates hit their peak at a whopping 18.63% in October 1981? 

By acting now, you can lock in a favorable interest rate before they potentially rise even further. Each incremental increase in interest rates can significantly impact your monthly mortgage payments and overall affordability. By securing a lower interest rate now, you not only save money in the long run but also enhance your purchasing power and make your dream home more affordable.

The Cost of Building

The cost of building a new home has undoubtedly increased over the years due to various factors, including rising material costs. This increase in construction costs might make some potential homebuyers hesitant to proceed with their plans. However, it’s essential to consider the long-term implications.

The price of building materials is subject to market fluctuations, and waiting for a potential decrease might not be practical or realistic. In fact, waiting might result in even higher construction costs if the trend continues. By acting now, you can lock in the current construction costs and potentially avoid higher expenses in the future.

Demand vs. Inventory

Even if there is a slight decrease in home prices, the demand for homes is likely to remain strong, creating an unfathomably high level of competition among buyers. In such a scenario, you may find yourself competing with a dozen or more eager buyers for the same properties. Is it really worth facing such intense competition?

A limited supply of available homes was a significant factor contributing to the surge in home prices. However, in 2023, the situation is gradually changing. Inventory levels have been rising, providing homebuyers with a wider range of options to choose from. With more homes on the market, buyers have a better chance of finding a suitable property and negotiating favorable terms with sellers who may be more willing to accommodate their needs.

Therefore, taking action now and buying a home can help you avoid intense competition and potentially benefit from a more favorable market environment with increased inventory and greater negotiating power.

Building Equity and Stability

Owning a home provides numerous benefits, including stability and the opportunity to build equity over time. By purchasing a new home in 2023, you can start building equity sooner rather than later, as each mortgage payment contributes to your personal wealth. Unlike renting, where your monthly payments go towards someone else’s investment, homeownership allows you to invest in your own property and reap the financial rewards in the long run.

Additionally, homeownership serves as a hedge against inflation and rising rental costs. Rent prices have a tendency to increase over time, subjecting renters to the risk of unpredictable and escalating housing expenses. By owning a home, you gain control over your monthly housing costs and reduce the vulnerability to rental market fluctuations. This sense of security and financial control can bring peace of mind and allow you to allocate your resources more efficiently.

Moreover, as you make mortgage payments and build equity, you have the potential to leverage that equity for other purposes, such as home improvements, education expenses, or even starting a business. Homeownership opens up opportunities for financial growth and can serve as a valuable asset in your overall wealth-building strategy.

Lifestyle Factors

While financial considerations play a significant role in the decision to buy a new home, it’s crucial not to overlook the emotional and lifestyle factors. Owning a home is not just a financial investment but also a place to create memories, build a sense of belonging, and establish roots in a community!

By waiting, you delay the fulfillment of your dreams and aspirations. You miss out on the opportunity to personalize your space, create a sanctuary that reflects your unique style, and enjoy the pride of homeownership. Additionally, renting or staying in a temporary living arrangement can come with its own set of challenges and limitations, including uncertainty and the inability to make long-term plans.

Buy Now. Refinance Later.

One strategy in the current market is to buy a house now and consider refinancing later. Despite higher interest rates, purchasing now secures your desired property and allows you to take advantage of historically low rates. It also helps build equity and avoids the risk of potential price increases. Refinancing in the future can improve loan terms, capitalize on improved creditworthiness, and potentially lower monthly payments. Consult with professionals to navigate the refinancing process effectively. Overall, this approach combines the benefits of current market conditions with the potential advantages of refinancing down the line.

Should I Buy A New Home In Kansas City Now Or Wait?

Waiting to buy a new home might seem tempting, given the current market conditions. However, the absence of guarantees regarding price decreases and the likelihood of continued increases make delaying your purchase a risky proposition. By acting now, you position yourself to benefit from the rising real estate market, secure a favorable interest rate, lock in construction costs, and fulfill your emotional and lifestyle aspirations. 

Buy Or Build With Hearthside Homes

Are you house hunting in the Kansas City Northland? Click here to view our listings. Check out these links to learn more about our 2-story, 1.5-story, ranch, reverse, and split-style floor plans. To request more information, fill out this form on our website or call (816) 781-0234. We’d love for you to follow all the behind-the-scenes fun on our social media platforms, including Facebook and Instagram!

Third-Party Inspection Process 

At Hearthside Homes, we understand that buying a home is a big deal! You want to make sure the home your purchase isn’t one you’ll regret in the future. That’s why all of our homes are inspected by third-party experts. In other words, we hire impartial third-party industry leaders to review each of our new construction homes! This comprehensive assessment involves a: 

  • Cosmetic inspection
  • Third-party HVAC duct cleaning
  • Third-party sewer line inspection
  • Third-party home inspection

Many home builders don’t subject themselves to these extensive inspections. At Hearthside Homes, we want our buyers to have confidence in their purchase! That’s why we hire impartial pros to look over our work. 

12-Month Warranty

In addition to completing a thorough inspection process, we proudly offer a 12-month warranty on all of our new homes. We even have a Warranty Manager on our team to make sure you have a go-to contact to reach out to if needed. You’ll have peace of mind when you buy with Hearthside Homes! 

Hear From Our Happy Homeowners

At Hearthside Homes, we prioritize customer experience and satisfaction. Did you know Hearthside Homes of Kansas City has over 100 5-star reviews on Google? Click here to check out our Google reviews and hear from some of our happy customers. Our client, Cierra, shares:

“This wasn’t our first time purchasing new construction, but it was a completely new experience. The quality, professionalism, and management was a complete 180 from our last experience building a new home. Our family couldn’t be more impressed and happy with our experience with Hearthside.”

Want to hear more from our happy homeowners? Click on the video below to watch a customer testimonial. Jeff & Becca are so thrilled they trusted Hearthside Homes with their new build! After years of searching for the right floor plan and builder, they finally decided to go with our team. Now that they’ve had time to settle into their new home, they are so happy they made the right decision to choose Hearthside Homes!