Homebuyers still choosing to build despite skyrocketing construction costs
MONTGOMERY, Ala. (WSFA) - As the housing market continues to boom, homebuyers are making tough decisions about whether to build or buy an existing house.
The cost of construction and materials has skyrocketed in the last year, leaving many buyers with a case of sticker shock.
“The cost to build a new house is a lot greater than if you went in and just bought a house,” said Coleman Farrior of Farrior Homes, LLC. He’s paying more for nearly every material that goes into his homes, a LOT more.
“I just recently quoted a house that we did last year, just to see what the lumber cost was about 110 percent increase,” Farrior said. It’s not just lumber, I mean, you know, concrete is going up, windows are going up. Windows are actually getting really hard to get, used to be four-week lead times, now we’re getting 12 week lead time.”
But the housing market right now isn’t leaving buyers much choice.
“It’s kind of a perfect storm, it’s a perfect storm for builders, is a perfect storm for sellers and buyers.” Real Estate agent Bonnie McGalliard explained.
McGalliard said there aren’t enough existing houses on the market right now to keep up with buyers’ demands.
“We’ve really never seen a market exactly like this,” McGalliard said. “I’ve had buyers that felt like that was their only option because there was nothing that fit their criteria. "
Those buyers are making the tough decision to build anyway, despite the costs.
“That’s due to rates. I mean, rates being so low, there’s just a high demand, Farrior said, explaining that low-interest rates help absorb the prices and keep ALL houses moving through the market.
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