Home Additions vs. Building New in the Washington Metro Area: 2016
In our last post, we threw out the idea of goals/resolutions and how they fit into possibly moving, building new or adding on. I think the follow up question to ask would be; Is 2016 the right time to invest in this life change?
According to David Charron (president and chief executive of Rockville-based multiple-listing service MRIS): “While 2015 has been a good year for the real estate market, we expect 2016 to be even better. The Washington area weathered the ups and downs of the past few years without as many difficulties as most other regions in the country, leaving us in a stronger position to take advantage of the return to a favorable real estate climate.” ( https://www.washingtonpost.com/news/where-we-live/wp/2015/12/31/what-to-expect-in-the-2016-housing-market/ )
Make the Most of your Home Equity
With that said, I think many areas in the Washington Metro Area will see continued growth in 2016, such as: Arlington, Falls Church, Fairfax, McLean, Vienna, Reston and Oakton, just to name few. With the improvement of your current equity position, this now creates the opportunity for you to sell your current home with a profit and move into a new home. This increased equity also lets you use the higher valued land of your current property, giving you the ability to tear down your current home in order to build a new home, or you can use the equity in your home to put on an addition or build a second story Pop Top.
Know your Options
The opening of 2016 begins with lower inventory of existing homes for sale on the market. This is great if your planning to sell you home this year but presents a little challenge if you’re looking to buy an existing home. This is why we feel 2016 is a great year to consider a Pop Top or new Custom Home to be built on your lot. If you’re like many of our past clients, you may have spent several months looking for the next home of your dreams but have come to realize that it doesn’t quite exist, its too expensive, it needs too much work or it’s the wrong neighborhood. And this is why we ask you… Why Move? Most homeowners may not understand the potential investment opportunity they have in their current home, not to mention our clients love their neighborhood, their kids schools, their friends and their commute.
Leverage Low Rates
The other thing to consider in 2016 is the fact that interest rates remain low. This gives our clients the ability to stretch their monthly payments further and enjoy an updated lifestyle without breaking the bank. Construction loans are a great way for our clients to entertain the opportunity to build a new home or an addition project. Many of today’s buyers are not sure how they work and many banks don’t offer these specialty loans. Here at Paradigm we work with great banks and lenders that are well versed in helping secure financing for these type of building projects, so you get the most out of your build.
As you can see, we are optimistic about 2016 and these are just a few reason why this will be a great year for you to take on a construction project. We would love to help you achieve your 2016 goals. So please schedule your no- cost consultation today. The home of your dreams can be yours in 2016!