If housing values are declining, is it wise to think about building your own home? I've heard this question more than once recently. The answer is always the same, "it's always a good time to build your own home." Housing is a lot like the stock market. You want to buy low, and sell high. If and when housing values decline, as is the case in some areas of the country, an owner builder can profit even more. Why? Because housing values decline for only one reason; sales of existing house are down. That means new construction is down. When new construction is down, so are prices for labor and materials. Subcontractor availability becomes increases too. (Now keep in mind, that there is a lag time for prices of materials and labor to drop, so you as the owner builder have to put a little pressure on suppliers and subcontractors to lower costs, but they will listen.) As an owner builder, you are in control, "the captain of your ship."

Don't wait for devaluation to bottom out because it probably has, and if it hasn't in your area, it should be almost there. How do I know this? I've been through three of these housing cycles and they all cycled up fairly fast. Remember, population growth continues exponentially and they all will need housing. What goes down, goes up, and as an owner builder, you will profit even more.