What’s driving up pricing for new builds and home renovations?
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Pay More and Wait
Bicycle shops can’t get bicycles. Starbucks is short on plastic lids. And the global shortage of computer chips could mean you’re waiting on—and paying more for—a new car, smartphone, or washing machine.
Industries of every stripe are getting hit with pandemic supply-chain disruptions. If you’re waiting to move into a new build or renovating an existing home, you’re likely feeling the squeeze.
Here’s Why
The storm last February in Texas, the blocked Suez Canal in March, and myriad production delays due to the pandemic are all factors in the supply bottlenecks we’re experiencing now.
The cost and availability of building materials like lumber are driving up the cost of new homes. Canada cut back on the production of lumber when COVID hit, fearing another recession. They’re in full production again, but still playing catch-up.
Ditto for home renovations: expect to pay more this fall to update your kitchen or add a main-floor master suite than you would have a year or even six months ago.
If you’re redecorating, expect higher prices and delays for goods like furniture and appliances.
Colorado’s strong job market is bringing people into the area. They need houses. The combination of demand and the increased cost of building materials is pushing prices up.
Looking Ahead
We expect home prices to continue to increase. Tariff issues with Canada and China are driving up prices. Goods from overseas are sitting on ships because the docks don’t have enough workers to get the goods through the port and onto trucks and rails.
The demand far exceeds the supply—and the demand is exaggerated. Homeowners who spent much of 2020 at home are eager to remodel. All of us learned how to live differently in our homes. People are ready to make lasting changes.
A Word of Encouragement
Generally, if people within an industry are being proactive, one can assume it’s safe to move forward. Realtors are buying properties despite the high prices. If realtors are buying, it’s safe to go for it.
Ready to make a move? We can help you weigh the pros and cons. We’re a phone call or an email away.
The Bradley Group wins 5-Star Award
Thanks to all of you who supported The Bradley Group winning the prestigious 5-Star Award again in 2021! Thanks for trusting us when you’re ready to sell, buy, or decorate. We appreciate your business and look forward to working with you soon!