If you’ve been on the fence about buying a home—whether you’re a current homeowner or a first-time buyer—2016 is the perfect time to make your move. According to experts who know the local housing market, there are a variety of solid financial reasons why it makes sense to take the plunge.
Dan Whitney is president of Landmarketing, Inc., an Olathe-based market research firm covering the metro’s nine-country housing industry. He points to this year’s expected hike in historic low mortgage rates by the Federal Reserve as a prime motivator for savvy buyers.
“There’s strong evidence that interest rates will go up during 2016,” said Whitney, who has watched and evaluated housing trends for 16 years. “Many people who have been waiting to purchase a new home will take a more serious look at making a decision.”
In addition to creeping interest rates, Whitney cites increased costs associated with building a house.
“Everything from raw land to development costs and permits and municipal fees to the actual components of building will experience steady inflationary pressure this year,” he said. “As the housing market gets even healthier, it’s almost certain that the price tag to build the same new home will be higher in six months than today because lots, interest rates and construction costs will be more expensive.”
Kent Welch, broker and president of Weichert Realtors Graham-Welch in Overland Park, echoes Whitney’s prediction of rising interest rates. “The average mortgage interest rate during 2015 was 3.9 percent,” said Welch, whose firm specializes in new homes throughout the metro. “This year’s rates will probably end up being in the 4.5 percent range and could even be 5.3 percent in 2017.”
Welch notes buyers can get more bang for their buck right now. “Even half a point increase on a $300,000 or $400,000 mortgage adds up to around $1,500 annually,” he said. “That tacks an additional $100 onto a monthly payment, amounting to thousands of dollars over the life of a mortgage.”
Welch agrees with Whitney’s assessment of a steadily improving residential real estate market, which helps drive up the demand for homes. “Three factors are combining to make now an attractive time to buy—a continually strengthening economy, an expected rise in interest rates and an increase in homebuilding costs,” Welch said. “The longer you wait, the better chances are that a house will cost more. It really is a prime time to buy.”
January is the ideal time to explore some of Johnson County’s hottest-selling communities and most popular floor plans. Rodrock Homes, which has 15 premier new home communities in the area’s most desirable school districts and prime locations, offers available inventory.
Three of Rodrock’s top-selling communities include Wyngate and Summerwood, located in Overland Park, in the heart of the award-winning Blue Valley School District, and Gleason Glen & Hills of Forest Creek, tucked into the western suburb of Shawnee with convenient access to the highly acclaimed DeSoto School District.
Each distinctive, family-friendly community has select amenities to appeal to active lifestyles—and available inventory to accommodate customization, purchase and move-in within 30 – 45 days.
Move-in ready homes feature Rodrock’s signature stylish interiors, eye-catching architectural details and open design for seamless, turnkey living. Also included in every home are upscale selections such as granite, tile, carpet, light fixtures, paint, and hardwood floor and cabinet finishes. With prices ranging from $320,000 to $1 million, available inventory includes popular two-story, reverse and one-and-a-half story floor plans on daylight and walkout home sites.
“Rodrock has one of the largest inventories of prime home sites of any area builder—including walkout, daylight or flat—located in the best school districts and suburbs,” said Rodrock Custom Homes Division Project Manager Tim Suiter. “Sites go quickly so now is the time to buy in one of our communities or your own handpicked location.”
The advantages of starting a custom home build in the off-season are many, including locking in costs now—and working with Rodrock Homes Custom Division means you’ll benefit from experience, enthusiasm and an acclaimed team of professionals.
Lifestyle is just the beginning
“Rodrock is built on a foundation of my passion for building affordable homes of integrity and developing communities for people to raise children and create lifetime memories,” said third-generation homebuilder and Rodrock Homes President Brian Rodrock.
Rodrock’s model homes are open today and every day from 11 a.m. to 6 p.m. Visit today and discover why now is the time to make your move to a neighborhood where you can’t wait to live.