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Is Now A Good Time to Build A Home? Update on the Current Market

Deciding to build your dream home is a momentous step, one that is met with both excitement and a bit of apprehension, especially in today’s fluctuating market. A question often surfaces for many potential homeowners, “Is now a good time to build a home?” With the Delaware housing market showing signs of both promise and unpredictability, it's crucial to navigate this landscape with informed, strategic decisions. Bromwell Construction is here to guide you through understanding the current state of the market.

Luxury new construction in Delaware exterior shot by Bromwell Construction

Understanding the Current Delaware Housing Market

The Delaware housing market, including the Wilmington, DE housing market, Rehoboth Beach, DE housing market, New Castle, DE housing market, and Lewes, DE housing market, has been a subject of much interest for prospective homeowners and builders alike. Recent trends indicate a dynamic shift, prompting the question, "Is the housing market slowing down in Delaware?" While certain areas experience more demand, leading to a competitive market, others show signs of stabilization, offering new opportunities for custom home builders.

Understanding the nuances of each local market is crucial. For instance, the Wilmington, DE housing market has seen varied activity, reflective of broader economic conditions and buyer sentiment. Similarly, coastal areas like Rehoboth Beach and Lewes continue to attract attention for their unique real estate offerings, affecting both the availability and pricing of new home construction projects.

Construction Costs and Market Predictions

In the ever-evolving landscape of the new home construction market, understanding construction costs is paramount. Are construction costs going down? The truth is, while there may be fluctuations in material prices, the overall trend in construction costs leans towards gradual increases, primarily because this is the trajectory of all healthy markets. Predictions for the coming year suggest that waiting for a significant drop in costs may not be a strategic move. 

It is unlikely to be cheaper to build a house than it was in the previous year. While forecasting exact figures is challenging, the consensus among industry experts is that costs are unlikely to decrease significantly. Factors such as the Delaware housing market's resilience, material supply dynamics, and labor availability all shape construction costs.

Primary bedroom in Delaware custom home with glass doors to balcony

Market Dynamics: Buyer's vs. Seller's Market

The question of whether it's a buyer's or seller's market in Delaware greatly influences decision-making for potential builders. Currently, the market shows characteristics of both, with variations across different regions. For instance, the Wilmington, DE housing market and the Rehoboth Beach, DE housing market may exhibit different trends due to their distinct demographic and geographic appeals.

In a seller's market, where demand outstrips supply, building a custom home becomes an attractive alternative to competing for existing homes, often resulting in a more value-aligned investment. Conversely, in areas trending towards a buyer's market, the decision to build can be influenced by the availability of land and the potential for long-term appreciation.

Why Waiting Won’t Make It Cheaper

In a fluctuating market, the decision to build a custom home sooner rather than later is underscored by several key advantages. The notion that "it’s not going to get cheaper" to build a home is grounded in current economic trends and the intrinsic value of new construction. Building now allows homeowners to capitalize on current interest rates, which, despite market fluctuations, remain historically attractive for financing new home construction projects. Additionally, starting your build in the current market means locking in costs before potential increases in materials and labor.

The expectation that waiting may lead to lower construction costs is a common misconception. Several factors suggest that delaying your custom home project could, in fact, result in higher overall costs. Material prices, for example, are subject to global supply chain dynamics, and current trends do not strongly indicate significant price reductions on the horizon. Labor costs, similarly, have been on an upward trajectory, influenced by skilled labor shortages in many regions, including Delaware.

The decision to build a custom home is significant, influenced by various market conditions and personal considerations. While questions about timing, costs, and market trends are natural, the overarching truth remains: building your dream home with Bromwell Construction now is an investment in your future. The current market presents unique opportunities for homeowners to create a space that reflects their personal style, meets their functional needs, and aligns with their financial goals.

Kitchen island in Delaware custom home with microwave built-in

Don't let the uncertainties of the market hold you back from starting your custom home journey in Delaware. Contact Bromwell Construction today to discuss how we can bring your vision to life, leveraging our expertise, commitment to quality, and understanding of the latest trends and technologies. Let’s build not just a house but a home that grows with you.

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