Homebuilder confidence reached its highest level since October 2005 this fall, according to the National Association of Home Builders. The score reached 62, one point higher than the end of summer.
"NAHB is projecting about 1.1 million total housing starts this year," David Crowe, NAHB's Chief Economist, explained in a statement. "Today's report is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year."
The beginning of 2015 saw the highest number of housing starts since the beginning of 2008, according to Trading Economics. Even though August saw a decline in starts, it is still above August, 2014's rate, Realtor.com reported. Plus, there were 1,170,000 applications for permits in August, 3.5 percent higher than in July, according to U.S. Census Bureau News.
Building Interest Grows
In Rochester, Minnesota, home builders celebrated its Fall Showcase of Homes, where 47 builders showed off their recently constructed homes, reported Minnesota newspaper, the Post-Bulletin. Builders said the hundreds of people walking through their homes all seemed genuinely interested in building a home for themselves.
"They were people who want to build a house, and they're serious about it -- they're not just kicking the tires," John Eischen, executive director of the Rochester Area Builders, told the Post-Bulletin.
The 2014, Rochester issued 369 homebuilding permits. This is the most since 2007, reflecting the growing homebuilder's confidence score.
With the housing market starting to pick up again, people are getting more creative with their home expectations, though many people are still cautious, according to Eischen. However, he explained that people who want something very specific in their home will usually have to build, rather than buy, a house.
When a person or family decides to build their next home, there are some things to take into consideration. These things can help keep the price down and result in the perfect home for the whole family.
Costs of Construction
Realtor.com suggests figuring out a budget and determining how to finance the home before beginning to build. Construction loans might be hard to find and they may not cover all aspects of the homebuilding process.
According to GOBankingRates, building a home can come with certain discounts and money-saving opportunities. For instance, new appliances and materials mean there won't be many annual maintenance costs. Plus, homeowner's insurance could be lower for homes with up-to-date furnaces and other features.
Deciding which features are best to spend a little extra on and which will work just as well with a cheaper option will cut costs. For instance, Money Crashers illustrates a situation where a couple remodeling a barn into a home decided to pay more for better insulation, but forgo the cost of painters, opting to paint the walls themselves. They paid an additional $1,600 for the better insulation, but will have a warmer, quieter home as a result. In addition, they saved $150 by not hiring painters.
Researching Professionals
Finding the right contractor to build a home is an essential part in getting the perfect home. The contractor should understand what is expected in the home and offer a reasonable price to match the work he or she will do.
Money Crashers suggests asking contractors for references - and then asking those references for more people to talk to. Contractors will usually send new customers to former customers who gave them the best reviews, but it's important to get all the information possible before starting a project.
Realtor.com explains that some people like to get builder recommendations from architects, while others like to ask builders for architect recommendations. No matter who is hired first, it's important to see their previous work and talk to former customers.
Looking at Land
Finding the right plot of land is another important part of the homebuilding process. If the home is designed before the land is chosen, there is a chance the design won't work well on that plot of land. The land should be chosen first for this reason. However, it is also crucial that the contractor see the land before plans are finalized. There may be additional work needed in order for the area to be ready for construction.
It's also important to look at the other homes in the area. Neighboring houses should give homebuilders an idea of what the house should look like, in terms of size and style. Building a home that looks out of place in the neighborhood could reduce its resale value.
However, building a community in the area will give homebuilders the freedom to set the standards for the neighborhood. According to eplans.com, sometimes splitting a large plot with someone else is more cost-effective than buying a smaller space. This way, both parties will get a deal on the land, plus they will be in a position to begin their community with someone they know and trust. GOBankingRates said this can lead to a strong bond between neighbors.