by Phillip B. Burum, DR Horton,
President, Building Industry Association (BIA) Baldy View Chapter
Buy now! Aside from yesterday, there has never been a better day to buy a home. According to recent reports by CoreLogic, Inc., a major California-based corporation providing financial, property and consumer information; “homeowners with mortgages saw the equity in their homes increase by an average of 8.1 percent during the fourth quarter of 2018 compared with exactly one year earlier, according to data released (in February). The average homeowner gained $9,700 in home equity between the end of 2017 and the end of last year, with equity growing in almost every state”.
This is great news to kick off the season which celebrates the benefits of homeownership. Every spring, we celebrate home ownership beginning with National New Homes Month in April, followed by National Remodeling Month in May and National Homeownership Month in June. Being a homebuilder, April is a particularly exciting month for me as I am allowed to provide unabashed enthusiasm for why new homes, in particular, can be the best investment most Americans will ever make.
One of the key benefits of new home is that its structure and its components are the safest and most durable homes ever made. According to the National Association of Home Builders (NAHB)/Bank of America Home Equity Study of Life Expectancy of Home Components, all types of modern insulation in a new home can be reasonably expected to last a lifetime if properly installed and protected against punctures, moisture and ultraviolet rays.
In a prior article, we reviewed the importance of paying attention and asking questions during your new home orientation. The life expectancy of your home and all of its parts and pieces will depend in part on your attention to detail and proper maintenance, which is why the orientation is a crucial part of homeownership.
Thanks to technological advances, new homes more can offer a greater value than an existing home because homebuyers can avail themselves of the comfort, safety, durability and security of a newly constructed home at about the same, or lower, level of investment as an existing home over the long run. While mortgage payments will be greater with the higher purchase price of a newly-built home, its lower operating costs mean the homebuyer will have annual costs that are about the same as if they'd bought a lesser-priced, older home with a smaller mortgage payment and higher operating expenses.
New homes are growing increasingly healthier and environmentally-friendly. Today’s builders are incorporating ‘green’ or environmentally friendly products or practices into their products with nearly a quarter of American homes now certified to a green standard. In the Baldy View Region, nearly all homes built exceed accepted industry standards which means that new homeowners will save money on energy costs while reducing the impact on the environment.
Water and energy consumption offer a major factor in reducing costs in the long run when considering a new home over an existing one. Today new homes in California use 50 percent less water and consume less than 57 percent of the energy of older homes.
Be part of the environmentalist movement by buying a new home today.
If you have decided that today is the day that you start your search for a home, visit one of the many new home communities in the Baldy View Region and take the time to discuss these savings opportunities with the community representative. Understanding the impact to your monthly budget will help you appreciate why a new home is often much more affordable than a resale, even if the purchase price is a bit higher.
We celebrate new homes in April because today’s new home is both the finest home ever built and the best investment most Americans will ever make in their lifetimes.
The BIA Baldy View Chapter seeks to advance the opportunity to attain the American Dream of home ownership. For additional information on homebuying, home improvements or the benefits of homeownership, go to www.biabuild.com on the web.