I know your question was posted months ago. Just a little background, our market in the FM area has shifted from a Buyers market beginning early 2012, now less then a year later a full fledged sellers market. Currently home sellers are getting much closer if not actually getting asking price, due to the lack of inventory of existing homes on the market as of late. so if you have a home to sell now maybe the time.
Now on the point of building. I have been told by a few builders that building costs are going to be going up approximately 3% in the coming months. That being said if you are looking in the 400-500k range that could potently cost a person between 12-15k, plus if a person finances you pay interest on that 12-15k over the years multiplying that cost.
On the other hand no one could say where the market is going to go in the coming year much less the next 5-8. You might look back and say "I am happy we held out" or be kicking yourself wishing you had made a move. You need to do whats best for you and your family.
Hope that helps one way or the other :)
The real estate market like so many other things in life, just depends heavily on what happens with the economy, other countries in the world, unemployment, wars and so much more.....
But as far as buying an existing home or build new.....
Well you can find out what the cost is going to be for building a new home and add a little extra, as
in most cases on paper it will look a bit different than when it starts going up and every change will
cost you extra, so careful there.
The other thing is look at homes that are similar to what you would build yourself, have an inspection, consider if you can add on down the road, even it it is just finishing a basement, or add a Great room in the back...... and see what seems financially a better deal...
Many existing homes, that are older and well build, with a good floor plan and well updated and
maintained by their owners, sometimes are priced very very well and they in most cases exist in an established neighborhood....
Before deciding, get the help of contractors/builders estimates and then connect with an experienced Realtor to look at existing homes, you may just fall in love with one, that fits your needs now and in the future.
Hope this helps a little...
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
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get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
But if you buy something that fits your family now, no one knows what the market is going to be like 5-8 years from now. Will you be able to sell your small home then? Will you be able to buy your dream home then? Who knows! Do what works for you today.