Why You Should Buy Pre-Construction Homes Today

By Gil Dezer, President of Dezer Development

With today’s market conditions, the biggest question on real estate asked -- When is the best time to make a home purchase? And the answer is simple. Today.

Why buy a pre-construction home in today’s market?

The reason you want to buy a home in today’s pre-construction market is because all economic indicators are pointing towards an increase in prices across the board. Due to supply chain issues, creating a shortage on supplies while the demand holds steady plus a record high level of inflation it is easy to forecast the upward trend in costs to produce.  Additionally, the rising cost of labor, caused by the current administration increasing the minimum wage, puts upward pressure on cost of labor from minimum wage earners up to executives; putting the risk on the developer to deliver the homes 5 years from now at today’s market values. All indicators are showing a cost increase both on supplies and labor, but the pre-construction buyer could fix the purchase price under current market conditions while hedging against the foreseen cost and price increases.

How inflation affects home purchases:

Residential developer costs are rising rapidly, both on the supply and labor side. Minimum wage is set to increase over the next 5 years and inflation is at a 40-year-high at 7.9% percent ever since the current administration has taken office.  All these factors will clearly push prices higher, putting the pre-construction sale as the buyer’s best bet.

Pre-construction benefits:

As previously mentioned, there is no doubt of significant cost & price increases in the short term.  Therefore, the main benefit for a pre-construction home buyer is the ability to fix today’s price for a new home being delivered in the not-so-distant future, during what is set to be the highest inflation rates ever since in the US. There are not many assets out there where you could buy today, at today’s prices but take delivery in 4 to 5 years.  Making it a no-brainer for anyone planning ahead.

----
Gil Dezer, President of Dezer Development, has grown to encompass unique and strategic holdings in New York, Florida, and Las Vegas over the past 45 years.