What You Need to Know About Today’s Housing Market
There is a lot going on within today’s new housing market. What’s been trending over 2020 and 2021 seems to be continuing into 2022. In the following blog we will explore everything from rising construction costs to home prices and more. We will tell you what you need to know, and why you may want to act sooner than later. If you’re considering buying a new home this year, this is a must-read!
The Pandemic Effect: A Continual Rise in Construction Costs
The costs of construction are the highest seen in 50 years with contractors and new-home builders alike feeling the impact in many ways – especially their bottom lines.
Recent data from the U.S. Census Bureau shows construction costs went up by 17.5% year-over-year from 2020 to 2021, the largest spike in this data from year to year since 1970! Plus, 2021’s costs were also more than 23% higher than pre-pandemic 2019.
The blame lies in several areas including, but not limited to supply chain issues, inflation, labor shortages and other problems that have dominated headlines in the past year.
As a result, these costs are ultimately passed down to potential homeowners buying a new home. The National Association of Home Builders (NAHB) recently reported that framing lumber prices alone have resulted in the average price of a new single-family home to increase by over $18,000 on average across the board.
Act Now Not Later
Looking ahead into 2022 the situation appears to have potential to get worse before it gets any better. If you are in the market for a new home, now is the time to make that decision and lock in today’s home prices before additional increases occur. NAHB has cited that there are several issues that are expected to become worse in 2022:
- Labor shortage continues to rise
- Rising inflation in the U.S. economy
- Federal environmental regulations and policies
- Gridlock/uncertainty in Washington making buyers cautious
- Concern about employment/economic situation
- Taxes on home builders
- Rising interest rates
- Attempts to limit mortgage interest deduction/other
Ironically, despite the rising costs and all the other issues mentioned, the costs for new-build houses for sale at all stages have been on a steep rise, up well over 50% at the end of 2021 from a year before!
Communities like Noble’s Pond can attest that there is pent-up demand for new homes and homebuyers are not being deterred by gloomy outlooks. In fact, experts say that because of the huge demand for housing and the lack of inventory on existing homes for sale, construction continues to build [pun intended] momentum today and into the foreseeable future.
Noble’s Pond continues to navigate all these challenging circumstances well. The fact is the community also continues to thrive with new construction remaining as close to on schedule as possible. Reach out to learn more about Noble’s Pond and the many options currently available so that you can avoid weathering the future uncertainty. Contact our Online Sales Specialist today at 302-240-4150.
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