Your Guide to Purchasing a New Home in Fall 2022
Interested in purchasing a new home this Fall but feeling anxious about the homebuying market? We understand! There is a lot of news out there about the state of the market that would make anyone anxious.
At HHHunt, we pride ourselves on our Brand Promise of being a Customer Focused company. That means we listen to our current and prospective customers and the things that concern them – including the state of the homebuying market. We have been working diligently to alleviate some of those concerns, and we have put together this guide to purchasing a new home in Fall 2022.
Challenge: Rising Costs of New Home Construction
The cost of resale homes and new construction homes in Richmond, Williamsburg, Hampton Roads and Raleigh has soared over the past two years. There are numerous reasons why and can be summed up in a recent presentation that Steve Fritz, our Chief Operating Officer, made at Virginia Commonwealth University’s Kornblau Real Estate Program’s Spring Housing Forum:
“There has been a domino effect as it relates to building new home inventory. Demand for new homes increased dramatically over the past several years while the industry as a whole was underbuilding. Then COVID hit and the lockdowns started. Once that happened, most builders were holding their breath because they remembered the ’07, ’08, and ’09 recessions. However, the opposite of what we expected happened – new homebuyer demand increased.”
To be honest, no one expected the demand for new homes to increase during the pandemic. Additionally, the supply chain for new home construction materials shut down for a period and has still not recovered. These factors are contributing to increased costs.
HHHunt’s Solution to Rising Costs
Fortunately, HHHunt Homes is well positioned which is why we have implemented locked-in pricing. That means you will never be charged for an increase in building materials or labor during the construction process. Once you sign a contract, base and structural pricing will not change. Other home builders have added clauses in their contracts that allow them to increase the price after you have signed a contract. Not at HHHunt.
Challenge: Rising Interest Rates
The Federal Reserve has already started raising interest rates and that has put pressure on lenders to raise mortgage rates. Right now, the national average is over 5 percent for a 30-year fixed-rate mortgage and that number is only expected to climb.
HHHunt’s Solution to Rising Interest Rates
Over the past 30 years, HHHunt Homes has built relationships with some of the best mortgage lenders in Richmond, Williamsburg, Hampton Roads and Raleigh. Based on our recommendations, many of our lending partners have agreed to offer our prospective homebuyers with locked-in mortgage rate options to consider for a specific period. That means the mortgage rate you lock in will be the mortgage rate you pay even if rates go up during the construction of your new home. This could potentially save you thousands of dollars over the course of your mortgage.
Challenge: Increased Delivery Time of New Construction Homes
Ongoing labor shortages and supply chain constraints have lengthened the timetable for the delivery of new construction homes. Depending on the type of home, delivery of a new home used to run between 90-180 days. Now that timetable is typically over 120 days if the home is not already under construction.
HHHunt’s Solution to Increased Delivery Time of New Construction Homes
As a diversified company, HHHunt owns and operates several apartment living communities in the Richmond and Raleigh markets. If you sell your current home before you move into your new home, we will help you find the perfect apartment home with a short-term lease. Our award-winning apartment communities offer incredible amenities and the same high-quality construction and features that you will find in your new home.
At HHHunt, we believe it’s how you live that matters and being honest and transparent with our customers is at the heart of who we are. We will always put our current and prospective customers first and find solutions to your concerns.
We’re glad you’re here, and we’d love to connect with you.
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