This news may come as a surprise given the current state of the housing market.
Yet for those of you thinking about, or who have been interested in building a log home, doing so in the current market could
actually save you thousands. There are many log companies in business today and they are getting more competitive in the slumping
housing market. Many producers are offering 5% off the entire package for orders to be delivered within a few months. There
are other companies selling packages up to 15% less than they were a year ago. This adds up to major savings that should turn
to tax free increased equity in the next few years as the housing recovery takes place.
Some
companies are going even further by offering to pay the interest on the loan during the construction period. Some companies
are even offering to pay 1 or 2 points towards the borrower’s mortgage, saving thousands more.
Also
builders and subcontractors are wanting to keep busy in this market and are much more willing to discount their rates, saving
another 10% off labor costs.
There are other incentives available too; free appliances,
deck or patio materials and even furniture. A little research and some time contacting various log home building companies
to find what incentives are being offered could result in a 20% savings by building in this market.
It is likely that home prices will continue to drop through this year and it will take a while for inventory
to clear out. However, there are many aspects to the housing market and its best not to buy into the panic. Much of the damage
that has occurred came about by builders creating large tracks of production homes, using aggressive sales tactics to under
qualified home buyers. This has resulted in large half-empty developments in cities across the country. The custom market,
especially in the upper range, has not suffered the same fate as permits for these homes has remained steady.
So if your goal is long-term appreciation, then the current slump in the market should not be a major factor
in your decision to build. Also downward trending real estate markets are usually accompanied by lower interest rates. The
federal reserve has already dropped rates 2 ¼% since September 7th and is poised for more rate cuts ahead.
You will save on lower house payments and probably a lower assessment resulting in tax savings. This market is most damaging
to the people who, for some reason or another, must sell. Home builders of spec homes and people relocating are caught in
the storm. This should not deter anyone from building a custom home and waiting for the market to turn for the better.
For a look at some floor plans under 2500 sq ft, log onto www.loghomedesignmag.com/under2500
