Throughout most of 2020 and 2021, home-buying has been attainable for a vast number of people. One of the biggest drivers of this is the historically low interest rate (and in turn, mortgage rate) environment.
Yet, while the sales of existing homes have continued to move along at a rapid pace (along with increased home prices), new home building has begun to slow. This has resulted from a number of key factors, including the rising cost of materials and supply chain issues, as well as labor shortages.
Due in large part to the continued COVID-19 pandemic, there have been mass shut-downs of work operations – which includes home construction – in many areas of the United States. Further, shipping delays have caused a slowdown in the completion of both residential and commercial construction projects – and at a point in mid-2021, the price of lumber had reached an all-time high at more than four times its pre-Coronavirus cost.
The good news is that over the past couple of months, lumber prices have retreated somewhat. In addition, the outlook for new home construction is still positive – and in many ways, the success of your new custom home project can simply be a matter of allowing more time for its ultimate completion.
This being the case, other positive factors could come of this, too, such as a longer window of time to prepare and sell an existing home, as well as to get your financing for the new home building project in place.
If your dream is to build a custom home that is uniquely yours in Orlando or the surrounding Central Florida area, give Rare Builders a call and we will provide you with more information so that you know what you can anticipate going forward. Or feel free to email us any of the questions that you have. We look forward to helping you create your one-of-a-kind residence.
Sources:
What to Expect If You Want a New Construction Home in 2021. By Devon Thorsby. July 22, 2021. U.S. News and World Report. https://realestate.usnews.com/real-estate/articles/whats-next-for-the-new-construction-homes-housing-market
