January 25, 2016 – Building a new single family home is a much greater investment than other large purchases we make in our lives. New cars, boats, and high-end electronics, all depreciate in value the moment we make the purchase.
In contrast, our customers routinely find that their homes assess for more than the total cost of the build. In fact, many customers have found their homes valued at considerably more than their purchase price, due to a combination of prime lot selection and our affordable price per sq foot for new home construction.
While the homes we build have appraised well even during the worst of economic times, we are excited by recent trends in the market.
Upon completion of last year’s residential tax assessments, Maryland is reporting an average statewide increase in home values of 9.5 percent. In Howard County, which includes increasingly popular Ellicott City, the average increase was 7.5%. Areas hit hardest by the housing crash had especially high increases, such as Prince George’s County, with a whopping increase of close to 30%.
There is very positive housing news on the national level as well. According to the National Association of Realtors, housing demands are so high, listed properties are turning over in just over a month on average. We see this trend locally, with properties on our potential Tear Downs page constantly coming and going.
The S&P/Case Shiller Home Price Indices (HPI) reported home value gains of over 5% versus the previous year, in both November and October. The Federal Housing Finance Agency is also reporting significant gains, with October/November 2015 representing a peak in house prices higher than the last peak, in March 2007.
With the experts expecting home value and demand to continue to rise, what better time to build your custom dream home?