If you’re ready to move up, you may be trying to decide between buying a home that’s already on the market or building a home. With the low supply of homes available for sale today, you’re probably willing to consider either avenue. While home builders are doing everything they can to help narrow the supply shortage, factors outside of their control cause delays.Here are some of the key challenges homebuilders are experiencing today and how they could impact your plans. Knowing what’s happening in the industry can help you make an informed decision.
Supply Chain Issues:
The first roadblock builders are dealing with is the lack of supply of building materials. According to a recent article from HousingWire:
“. . . Nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”
Even though it’s what’s covered most in the news, the supply issue isn’t just with lumber. There are many other supplies that are impacted too, including roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall).
The difficulty in getting these items is causing longer timelines for new homes since builders have to wait for what they need. And even when they do get the product, the principle of supply and demand is driving prices up for those produts
Skilled Labor Shortage:
Builders are also having a hard time finding skilled labor. This means they’re short-handed, which further drags out their timelines.
But there is good news. The February jobs report shows inreases in employment in the construction industry. While finding workers continues to be a challenge for builders, there are signs of positive momentum moving forward.
How This Impacts You:
When you weigh your options on building a home vs. buying an existing one, it is crucial to factor in the delay in new home construction. While this doesn’t mean you should cross newly built homes off your list, it does mean you should consider your timeline and if you’re willing to wait for your home to be constructed.
Understanding the latest market conditions is key to making the best decision possible when you’re planning your next move. To ensure you have all the information you need, partner with a real estate professional here at Corken + Company. They’re not only experts in the local market but can help you confidently decide what’s right for you, your priorities, and your timeline.
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