What You Need To Know if You’re Thinking About Building a Home

If you’re ready to look for a new home, you may be trying to decide whether you want to buy a home that's already on the market or build a new one. And since the inventory of homes for sale in Prescott and the surrounding area today is low, you’re willing to consider either avenue. While home builders are doing everything they can to construct more houses and help narrow the supply shortage, they’re also facing delays due to factors outside of their control.

Here’s the latest on some of the key challenges homebuilders are experiencing today and how they could impact your plans to move up. When you know what’s happening in the industry, you can make an informed decision on whether to look for a newly built or an existing home in your home search.

Supply Chain Issues

The first hurdle builders are dealing with is the lack of supply of various building materials. Nearly everything needed in the homebuilding process is facing some sort of delay and price increase.

The supply issue isn’t just with lumber, even though that’s what’s covered most in the news. The article explains many other supplies are impacted too, including roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall).

The difficulty in getting these items is dragging out timelines for new homes as builders wait on what they need to finish construction. And since materials are in short supply, even when they do get the product, the principle of supply and demand is driving prices up for those goods.

Builders are struggling to stay on schedule.  A new neighbor near us has moved into their home sans garage doors.  They have plastic tarping over the openings and they don’t know when their garage doors will be installed.

Skilled Labor Shortage

Shortages and high costs are not the only challenge with new home construction today. Builders are also having a hard time finding skilled labor, which means they’re short-handed, further dragging out their timelines.  The skilled labor shortage in the construction industry is not new. It’s been an issue for more than ten years now.  The February jobs reports show employment gains in the construction industry, which is finally some good news. The underlying momentum of the labor market recovery is strong and falling COVID cases are pushing that along.

How This Impacts You

So, when you weigh your options and try to decide between building a home or buying an existing one, factor the potential delay in new home construction into your decision. While it 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 while your home is being constructed. When planning your next move, understanding the latest market conditions is key to making the best decision possible. To make sure you have all the information you need, let’s connect. Together we can make sure you know what’s happening in our local market so you can confidently determine what’s right for you, your priorities, and your timeline.