Barndominium Resale Values Now and Looking Towards 2024
Barndominiums have surged in popularity for their spacious footprints and budget-friendly construction. But how well do these non-traditional steel homes hold value when it comes time to sell? Let’s examine current barndo resale trends and what the outlook may be in 2024 as interest rates hopefully improve.
Today’s Barndominium Resale Market
Currently barndominium resale values are:
– Highly dependent on finding buyers appreciating their unique perks rather than direct comparables. Avid barndo fans help but niche appeal limits broad demand.
– Strongest for well-built and maintained barndos in good condition. Poor construction or deferred maintenance drastically hurts value.
– Maximized in rural communities where their pole barn aesthetics blend in. Traditional neighborhoods see larger value gaps.
– Challenged by appraisal difficulties. With limited sales data available, appraisals often under-value barndos forcing sellers to adjust prices lower.
– Growing gradually as interest expands, but retains risk of selling below construction investments in some cases. Sellers may wait for right buyer.
– Safe bets for buyers when priced appropriately according to comparative builds and finishes, not expecting full custom home returns.
2024 Outlook as Rates Improve
If the Federal Reserve succeeds curbing inflation in 2023, interest rates may begin lowering in 2024. When this happens:
– More buyers priced out of rising mortgage rates today could re-enter the market expanding demand.
– Lower rates may allow lenders to loosen tight restrictions, opening barndo financing to more prospective buyers.
– Refinancing existing mortgages at lower rates may free income for suitable buyers to bid competitively.
– Appraisal gaps could begin improving with more sales data available.
While unique niched appeal will still impact values, better financing conditions and data in 2024 could help barndominium resales gradually gain stability on pace with traditional homes, especially if economic factors remain favorable.
The takeaway? Barndos carry more resale risk today than conventional homes. But for buyers focusing on lifestyle fit over investment returns, their customizable value remains worthwhile in 2023, with signs of steadily growing appreciation on the horizon.Now is a great time to start your barndominium building journey as rates continue to get better as time goes on.
