New construction has changed significantly over the last 12 to 24 months. There are a few things you should know whether you’re considering buying, upgrading, or just looking at the market.
The top 10 builders in the country make up 30% of all single-family home sales. Builders own tons of land, and they’re selling it. Lumber prices have also increased in the last year by up to 170%. Lumber prices alone make a new home about $40,000 more expensive to build than in the recent past.
80% of builders are experiencing delays either due to shortages, the pandemic, or both. So the cost of new construction is rising, and houses are taking longer to complete. Reminder: If the home is more expensive, you’ll likely have to make more or higher payments, so make plans for that. Also, ensure your financing and interest rate are secured because they often have a time frame for how long they apply.
If you have any more questions about new construction or real estate in general, please reach out via phone or email. We’d be glad to help you.