09 Aug What happened with new construction over the last 6 months?
What happened over the last 6 months in new construction? What will happen in the next 6 months?
What have you experienced? What have friends or colleagues experienced? So many times we’ve heard about bidding wars, waiving contingencies, home inspections, etc. Here are some concrete facts about what’s been happening.
Looking back over the past 6 to 8 months – what’s changed? What’s stayed the same? We’ve all heard the saying the ‘more things change, the more they stay the same’. For those us in residential new construction this saying has not held true! It’s felt more like hurry up and wait. There has not always been rhyme or reason with supplies, price increases, workers, etc.
If you review the realtor.com news web site this is their take on new construction and where it’ll be booming in the next 6 – 12 months. You may be surprised by some of the areas, I know I was 
https://www.realtor.com/news/trends/cities-that-will-dominate-hom
CNBC has a totally different take on new construction. See their story at:
And Forbes focuses on the huge increase that builders have faced and continue to face moving forward:
https://www.forbes.com/advisor/mortgages/should-you-build-a-house/
It seems daunting to continue building, however, Bristol Pacific has found that our buyers are educated and realize what we and other builders have been up against, and we’ve managed to work things out and keep moving forward. Supply chain issues have forced longer lead times to close and push schedules haywire, but we stay the course and manage to get the home built. It has also been a perfect storm for builders as you speak with builders that are new to the market or like us and have been building for over 30 years. It’s not just that the cost of plywood has skyrocketed, it’s fill, stone, all the electrician’s, plumbers’, etc. materials have increased sharply as well. There’s been crazy price increases with piping, irrigation materials, fireplaces, etc.
The future’s market says it’ll come down, but no one has a crystal ball to tell us when or by how much.
Another site, Nerd Wallet, is a favorite of mine and their 2021 predictions for the next 6 months are an interesting read as well:
What is a prospective buyer to do? Continue to educate yourself on pricing, builder’s reputation, years in business and most importantly has the builder weathered a difficult time previously and how did they handle it and continue to move forward? Then keep educating yourself and what your priorities are for moving and how long will you stay if you move. A wider net needs to be spread in this ever evolving and wildly changing time before a final decision is made.
Look everywhere and you’ll find the best solution!
