While the war in the Ukraine might seem like it’s worlds away, the reality is that over the past few decades, as the economy has become much more global in nature, it is the now the rule – rather than the exception – that events happening anywhere around the world are fair game for impacting financial and other economic factors right here at home in the United States.
Over the past two years or so, the COVID-19 pandemic has caused significant hold-ups on a variety of items – which include lumber and other building materials. This, in turn, has slowed down the pace of new home construction, along with increasing prices.
Now, with the conflict with Russia growing strong, higher building costs – along with the potential for interest rate hikes on mortgages – have the ability to put a damper on the creation of your dream home.
It is estimated that the luxury real estate market could feel the disruption more than other housing sectors – particularly because stocks and other equity-related financial vehicles that are oftentimes used for some or all of the down payment are extremely volatile at the moment.
So, what is the solution?
One possibility is to move forward sooner rather than later – and there are a couple of valid reasons for this. One is that you could lock in a lower mortgage rate (possibly much lower than in the future) – along with a construction loan – before interest rates go up (which they are predicted to do in the near term).
In the long run, going this route could end up saving you a substantial amount of money…even if the time that it takes to complete your home is stretched out. Talking with an experienced custom home builder can help you to get some ideas regarding what the finished product will look like, as well as an approximate time frame for the job.
If you are planning to build a new custom home in Orlando or the Central Florida locale, give us a call and talk with one of our experienced designers. We look forward to helping you move closer to your dream of a custom built home.
How Russia-Ukraine War Could Affect U.S. Housing, Economy. Realtor Magazine. February 25, 2022. https://magazine.realtor/daily-news/2022/02/25/how-russia-ukraine-war-could-affect-us-housing-economy