Building Costs On The Rise

Have you been sitting on the fence where your move is concerned? Well, we have some interesting market dynamics that may change the landscape slightly (perhaps more than slightly…). We have many clients who are in the process of building new homes right now, and most of these builders have repeated a slightly concerning trend. Lumber costs appear to have doubled or even tripled in some cases, and this will certainly affect the new construction realm as builders begin repricing to adjust to the new numbers being quoted to them.

What does this mean for you?

Some of the builders will not be in a position to absorb these costs, and they will have to raise prices significantly in order to continue to build quality homes. Other larger builders may slowly increase pricing to avoid shocking the market and yet help offset the “new normal” where their lumber costs are concerned. Either way, if you have been “on the fence” where your move is concerned, it may be time to move into action. If building costs continue to increase rapidly, this will cause similar existing home prices (especially in the move up realm) to continue to increase. If you were considering new construction, we should be meeting with builders now, to lock in Parade of Homes promotions and current pricing before adjustments start to be made on a larger scale.

We never know exactly how these price changes will affect the market as a whole, yet we can predict some possibilities, as we look to the future of our local market. Would you like to discuss these dynamics further? Call me and let’s set up a time to chat and get your plan moving!

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