I explain all the issues facing new home construction in our market.

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All eyes have been on builders to help satisfy the unprecedented demand and lack of supply nationwide in our real estate market. Sadly, the skyrocketing cost of lumber and supply chain issues have raised the price of new homes and compounded our inventory problem.

According to the National Association of Home Builders, $36,000 has been added to the cost of a new home. This is largely due to lumber prices, but the good news is that lumber costs have dropped 40% since their all-time high in May. However, the supply chain issues facing lumber and other materials are here to stay for a while. They have already caused a 9.5% drop in new home construction.

If you’ve been holding off on buying a home, hoping that there’s some immediate relief in sight through new construction, think again and don’t hold back. We’re going to have these supply chain issues for a long time which means we’re going to be in this market for a while as well. If you have any concerns or questions about the market, don’t hesitate to reach out to us. We’d be more than happy to talk to you.