Is Now the Right Time to Build a House?

[Emilio Ramirez]

We are all aware of the large inventory of already built homes available on the market out there.

But let's say that none of those leftover McMansions or Foreclosed homes suit your needs. Isn't right now the perfect time to build a home. I would imagine that everything involving the process can be had for a discount from design to construction maybe with the exception of permitting.

Pros

Custom home to your design.
Brand new instead of used.
Discounted prices.

Cons

AEC team may not be financially sound.
Ignorant owner could get raked over the coals by low bid contractor.
Subpar quality.
Inability to get a loan.
Maintain separate residence while under construction.

I haven't thought about this alot, but initially it would appear that the only difference between building now and building four years ago would be the discounted prices and potentially the ability to get a loan. But if you have buyers who are qualified to purchase an existing home, they should be qualified as well for a construction loan.

Maybe the discounts to build are not equal to the discounts available through foreclosure? Any comments or insight?