Ah! The ever-old question, “When will homes get cheaper in my area?” The pandemic drastically changed the housing marketing. From 2019 to 2022, we saw a major shift in the price of homes throughout the nation. This has a lot of house hunters sitting tight in hopes the price of homes will plummet. In this blog post, we’ll be discussing why homes will likely continue to increase in price and you might not want to put off purchasing!
If you’re stopping by our blog for the first time, welcome to Hearthside Homes of Kansas City! We are 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 and the communities we build in. We hope you enjoy reading this insight about when will Kansas City new homes get cheaper!
How The Pandemic Changed The Housing Marketing
In an effort to combat the economic impact of the pandemic, the feds lowered interest rates. This created a surge of demand for homes, effectively raising the value of listings. Like all commodities, supply and demand dictate pricing!
Materials & Wages For New Builds
Low-interest rates and the appeal of new construction had builders busy trying to keep up with demand. In addition to the increase in demand for new homes, supply chain shortages have contributed to the increase in the price of a new home. Furthermore, inflation has contributed to trades asking for higher wages. When demand and the cost of materials and labor are high, the price of the home has to increase! Now that interest rates have risen slighting, it’s possible we may see a slight decrease in the value of resale properties. Yet, with the cost of building being so high, new construction likely won’t be budging much.
Will We Have Another 2008?
If you’re waiting to buy a home until the market crashes, you might want to think again. Based on historical data, we all know that the real estate market periodically shifts and alternates favoring buyers and sellers. However, the odds of having a housing crash as we saw in 2008 appear to be slim. Although we’re currently experiencing inflation, it’s unlikely that a recession could affect housing prices that drastically. The cause of the 2008 housing crisis was due to lenders oversupplying funds to buyers with low credit scores who defaulted on their mortgage payments. This risky practice has since been corrected to help prevent it from happening again.
What About Interest Rates?
If you’ve been in the market to buy a house over the last couple of years, you’re likely well aware of rising interest rates. In 2020, buyers were scoring big-time with 30-year rates as low as 2.68%. Just a short two years later, today’s average 30-year fixed mortgage rate is in the 5% range. In the grand scheme of homeownership, this isn’t something that should deter you from investing in a home. Jumping from 3% to 5% interest rate might come with a little sticker shock, but you’re still getting a historically good deal! The highest recorded 30-year interest rate was a whopping 18.45% in October of 1981. That same year, the annual average was 16.63%. You can learn more about historical interest rates in the United States here. Plus, you can click here to check out our recent blog post discussing why today’s interest rates shouldn’t scare you!
When Will Kansas City New Homes Get Cheaper?
If you’re scavenging the internet wondering when will Kansas City new homes get cheaper, we hope this blog post shared some insight. As a home builder in the Kansas City Northland, we don’t expect the cost of building a new home to go down any time soon! Not only is the demand for new construction high, but the cost to build is not likely to change in the near future.
Not to mention, Kansas City is a booming population that is only going to increase in demand! Home buyers around the country are flocking to the midwest more than ever before. After all, it’s a great place to live! Therefore, it’s predicted that housing prices will continue to increase in our area.
Buy A New Home With Confidence
If you’re house hunting in the Kansas City Northland, we invite you to check out our current listings! 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
Most 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. In addition, we proudly offer a 12-month warranty on all of our 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!
We Have Happy Customers!
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, Kim, shares on Google:
“I highly recommend Hearthside. This was my first time purchasing a home on my own (much less a new home), and they were wonderful. Communication was excellent. I loved seeing the home’s progress on their website. Everyone assigned to my home was fantastic. They did a great job preparing me to move into the home. They get five+ stars from me.”
Watch This Customer Testimonial!
Want to hear from some of our proud homeowners? Check out this video testimonial! Viktoriya and Minh canceled a contract with another builder who wasn’t giving them the confidence, reassurance, and professionalism they deserved. Instead, they purchased with Hearthside Homes and are very happy with their decision! Click here, or on the video below, to watch Viktoriya and Minh’s testimonial.
Connect With Hearthside Homes
We hope you enjoyed reading this blog post discussing when will Kansas City new homes get cheaper. Are you ready to start your home buying journey? Click here to check out our current listings. If you have questions, don’t hesitate to give us a call at (816) 781-0234. You can also schedule an appointment at our Design Center located at 1915 Industrial Drive (#300), Liberty, MO 64068. Be sure to follow all the behind-the-scenes fun on Facebook, Instagram, and Pinterest! Happy house hunting!