LMCane said:
hopefully about 5 more years until early semi-retirement at age 56.
I have found several nice brand new communities being built near the beach in Florida.
is now the time to act because prices, even if they moderate are never going to be cheaper than today?
or is it better to wait until rates come down and perhaps the prices of new construction come down?
I have severe FOMO for Merritt Island, Florida.
Following...very interesting to consider.
IMO, construction prices will never return to pre-pandemic levels unless there is a major recession/housing crash that forces it. Even then, I believe Sunbelt states will be mostly immune. The policies in these states will continue to drive massive population growth and our "open borders" will continue to drive city-dwelling residents further out from their core to areas that don't have available housing today (ie, see NW Houston [Waller/Hempstead/Brenham] and far N Houston [Magnolia/Plantersville] as examples].
Just like people have gotten used to spending $65k+ on new vehicles today, they will adjust and absorb $225+psf construction prices over time and that will become the "new norm". Cheap debt makes it more palatable right now, but it remains to be seen if/when rates go up, how that will impact. Personally, I think it will just cause a slow down in construction, not a price reduction. When you have land/lots being purchased and developed 2-3yrs before a house goes under construction, your 'sunk costs' are such that a builder can't afford to cut their margins just bc material prices swing.
I love real estate, but it's just as bad of a speculative market as oil & gas/chemicals, especially in todays bizarro world.
