New construction across the country has been booming. As a result, building materials have become hard to get. Shortages of materials create a supply and demand situation which causes the price to increase.
Most of the low end home builders I have spoken with are increasing their prices by $5000 on November 1, 2020. This will affect the high end homes by a much greater amount.
So, how will this affect existing homes. As the price a new homes increases beyond a buyers ability to spend, the existing homes become their only option. Currently the inventory of existing homes is low, and demand is high, causing those prices to increase. Existing homes are appreciating at a rate of 5-10% a year. Where will it stop is the big question.
Thinking about buying soon, please contact your RE/MAX Select Professionals agent soon. We can offer a wealth of information, and suggestions of how you can best invest your available funds.
