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Many buyers and sellers think the market slows down in the winter. The truth is people move year round because one element of life or another brings about an opportunity to move. Premier agents remain very active with buyers and sellers through every season because they choose to work hard.
If the market is going to continue to present a high demand for housing, prices will continue to go up. Deciding to sell and buy now is smart, especially with interest rates remaining at an all time low. Go to an online mortgage calculator and enter an interest rate at a reasonable 6% and compare it to the rates today, which are less than 4%. Note the difference in the monthly payments, then look at the difference over 15 or 30 years. I just did this for a couple and the $200,000 mortgage payment went up $300 a month. Wow!
It is no surprise that a strong market results in construction costs going up. (see information to quote below)
Consider the following quote from this article:
After what will likely be 2% growth in 2016, overall construction costs are forecasted for ongoing growth in 2017 in the 2-3% range. These increases will be primarily led by gains in construction labor wages, which is forecasted for 3-4% in 2017 – this is a result of the labor shortages the industry is already experiencing.
The pace of growth for architectural / engineering services will slow in 2017, after 3% growth in 2016. Equipment will be relatively flat in 2016 and 2017, with 0-1% forecasted.
Material costs are forecasted to have a 2-3% increase. Asphalt paving, fabricated steel and concrete block pricing should resume growth in 2017 after contractions in 2016. Gypsum products will experience the strongest growth of all materials with 6-7% increase in price.
As you can see, now is a prime time to buy or sell a home. And remember: Don't move until you call me, Kevin Alderink!