A "mixed bag" in the housing market...
Around our workplace we are often reminded that the construction of new homes is a complicated endeavor. Contractors are putting together complex assemblies with thousands of parts, using dozens of vendors and subcontractors and hundreds of hours of manpower – all of which must be coordinated precisely to achieve its desired goal.
Then we have this take on difficulties in the market: "Many builders are expressing frustration over being unable to respond to the rising demand for new homes due to difficulties in obtaining construction credit, overly restrictive mortgage lending rules and construction costs that are increasing at a faster pace than appraised values. While sales conditions are generally improving, these challenges are holding back new building and job creation," Rick Judson, chairman of NAHB said in a statement. That’s a look at the national market from the head of the National Association of Home Builders.
In Quincy we are seeing a rising demand for new construction – and that’s great! Some consumers are being squeezed by stricter lending guidelines and others are getting some sticker shock as the price of certain construction inputs jumps quickly.
In a report released by the Associated General Contractors of America (AGC), it was revealed that prices of lumber, plywood, gypsum, plastics, roofing material and paints spiked up a notch during March. The strengthening demand nationwide for these products is leading to a rise in prices. Quincy has not been spared from these price increases, and it is driving prices higher on finished products.
Savvy buyers are looking to move sooner, rather than later, on their projects – as many people foresee a continued rise in prices. Those that have been able to keep their credit rating high are taking advantage of interest rates that are still very favorable.
Overall we find these times to be “a mixed bag”. Whatever your goals, hopes and dreams are for your building project, we would be happy to provide our expertise as you evaluate the opportunities and pitfalls of the building market.