Is 2022 a smart year to start planning a custom home?

Is it going to be cheaper to build in 2022 than it was in 2021?

According to the National Association of Homebuilders, construction expenses are expected to rise 14.5 percent in 2021. (NAHB). This is approximately eight times the rate of expense growth projected for 2020. Over the last five years, the average annual rise in building costs has been less than 2%. While we don’t expect a cost reduction in 2022, we do expect a return to more regular cost rises in the 2% area. Lumber prices should begin to follow a more normal seasonal pattern. Lumber prices are unlikely to fall, but lesser volatility will aid supply chain normalization in 2022.

Is the property market on the verge of collapsing in 2022?

Many of us are still reeling from the devastation that the housing market endured in 2008. We had never seen a housing market collapse of that size before. The source of the 2008 financial crisis was lax financial lending standards, which allowed consumers to buy homes they couldn’t afford once their variable rate loans increased. Lending criteria have been substantially tougher in recent years, with the vast majority of loans being traditional fixed-rate loans. The lending criteria were strong at the height of the pandemic, when unemployment was rampant and only a small percentage of loans were in default or required forbearance. Even if a recession occurs in the future, this is an encouraging sign that we will not suffer a banking and foreclosure crisis like we had in 2008.

We are unlikely to see a housing crisis in 2022, but we do expect the market to calm down from the extraordinarily hot markets of 2020 and 2021.

Until the national meltdown in 2008, real estate was historically regionalized. The Sun Belt States (Florida, Texas, Arizona, and so on) have historically had hotter housing markets than Ohio, which also cool more dramatically. When the housing market cools due to higher interest rates, the first residences individuals stop buying are second homes, which account for a big percentage of homes in Sun Belt markets. In Ohio, we don’t have as many second homes or investors, which helps to keep our market more stable.

Is it likely that interest rates will rise?

For years, the housing market has been spoiled by low borrowing rates. Unfortunately, given the significant inflation we saw in 2021, rates are almost certain to rise in 2022. The Federal Reserve began lowering its purchases of Treasuries and mortgage-backed securities in November, with the intention of ceasing purchases by mid-2022. Interest rates will very certainly rise in 2022 as a result of this.


Where do I look for land to build my dream home?

In June of 2021, we reported that the availability of vacant land was at an all-time low. It has just gotten worse. The date for when more lots will be available has been pushed back due to supply chain concerns and a lengthy approval process.
As a build-on-your-lot house builder, we’ve noticed that the amount of available land for custom homes has been steadily decreasing since 2008. There are few new developments that are not under the jurisdiction of large regional or national home builders. This has made finding standard build able properties in subdivisions more difficult than ever for our clients.
The majority of available custom home property is currently on non-traditional lots (tear downs, lot splits, large vacant parcels).

If you’re in the PDX area and are in need of a Portland custom builder, you can visit Stonecreek building for a free consultation.

How To Get Your Landscape Started This Year

As a homeowner, one of the big decisions you face at the start of every year is what you’re going to do with your landscape. You see all those beautiful pictures online of fantastic landscapes that you wish you could mimic. However, knowing where to get started can be a big setback for most. Here are some tips to help you finally get started on that wonderful landscaping design you’ve been dreaming of. 

Before you even start to lift a shovel, you need to plan out your concept for your yard. What do you plan on doing activity-wise on your lawn? If you’re like most, you have different activities you do in the front yard as compared to the backyard. The front yard may just be a place where you enjoy relaxing on the front porch and smelling your flowers. The backyard may be more of an entertainment area for you to invite over the neighbors for a nice evening cookout. Think of all the things that you and your family truly do or want to do and write them down into a list. This will give you a starting point of what you need to develop your ideal landscape. 

Once you know the activities you’ll be doing, you can decide on the features you’re going to need to add to your landscape. This may include a back patio, a gazebo, a garden, a fence, and so much more. Every homeowner’s vision is going to be different from the next person’s. Look over all your activities and make a list of the amenities that you’re going to need to install on your landscape. Remember to read over your activity list a couple of times so you can be assured you’re including everything. 

Next, it’s time to make a landscape design. Pick a focal point for your front and back yard. Position it on your design plan and then start working out from there. You probably find that you’ll be changing your design a little each day until you become fully satisfied with how it’s going to look. Once you reach that point, it’s time to head on out to your local Camas, WA landscaping supply store to get all the supplies that are on your list. By taking the time beforehand to plan out your entire design, you can be assured that your list has everything you need on it so you can get started as soon as you get home with your supplies which you can find. 

Now, begins the fun part. You can get to following your landscaping design and actually erecting your ideal home landscape. We encourage you to enlist the help of some great friends and be sure to clearly share your design so the job can get done quickly. Starting your landscape this year isn’t that hard to do if you simply take the time to plan everything out ahead of time. When your planning is done, the installation of your landscaping components becomes the easiest and most rewarding part of the whole process.