MONTGOMERY, Ala. (WSFA) - If you’re in the market for a new home, now may be the best time to buy.
Despite the coronavirus pandemic, home building is up between 10 and 20 percent over 2019.
The reason for the spike? Interest rates as low as 3 to 3.5 percent, which Greater Montgomery Home Builders Association’s Doug Fuhrman says are very favorable.
“Right now, a lot of people are refinancing their homes or getting favorable rates on their new home construction as well,” Fuhrman said.
The GMHBA also believes low inventory has played a role in the home building spike during the pandemic.
But despite the good rates, lumber costs have gone up because the pandemic has forced some lumber yards to put a number of projects on hold.
“If you’re in the middle of a building project right now you can see some forecast of that, but once production catches up to demand those prices will be coming back maybe later in fall or winter,” Fuhrman said.
The GMHBA says before you buy or building a home, make sure you do your homework.
“Do some good research on your lot purchase for the architect or designer you use to get what you want, but we always encourage folks to get a good license to builder,” Fuhrman said.