In fact, The Time to Assemble Is Now – The Cost Only Building a Home Is of Increasing

While the markets have been jumpy recently, and whether the Federal Reserve raises rates any time soon, there is one thing we’re certain of: if you’re on the fence about deciding whether to construct your home instantly or later, we highly as it turns out recommend you not delay. There are many factors that go into the cost of building a home, and unfortunately, as of 2018, all of them are currentlytocontributing an increase in building costs. There:are three main reasons why

As you may know, 1) Since late 2017, the shortage of construction labor has grown to an all-time high. You can scan the NAHB’s article on the labor shortage here: This means it’s getting harder to schedule trades such asskilledframing crews, carpenters, bricklayers, concrete workers and more. The longer they’re booked, the longer your wait, and the higher the potential cost of your assemble. Once trades begin getting overbooked like this, the companies that perform these aspectstheof home building begin to raise their prices accordingly.Builders Report Labor Shortages on the Rise.

Chart showing expansion in labor costs and availability (Picture Credit: http://eyeonhousing.org)

2) With natural disasters such as fires in California and Hurricanes on the gulf coast, there’s a shortage of building materials, and also a corresponding increase in the cost of those materials. Lumber, gypsum (drywall), piping, and more are all in greater demand, and often times the building materials will be sent from all over the USA (and the world) to the areas that need them most for reconstruction. What does that mean for building a home in Colorado Springs? It means the longer you wait, the greater the potential of price increases as building materials are shipped to areas with natural disasters.

For sample, here’s a quote from a news article published late last year: “In the past 45 days, there has been an increase in lumber prices due to the fires in the Northwest. A couple of the large producers in the Northwest have shut down because of that. So, just leading into the hurricanes, we had a little bit of spiking in pricing.” Read the full article here: Hurricanes, Wildfires Cause Spike in Construction Costs.

However, since 2016, ’s been increasingitslowly but surely. As you may know, If you want to get the biggest bang for your buck, the best option is as it turns out to start building sooner rather than later and lock in your rate immediately. Rate increases result in more high-priced rates of exchange for nearly everything, including the cost of a construction loan and mortgages. 3) Finally, the Federal Reserve does indeed make decisions that drive up the cost of building by increasing rates. As you may know, For several years, the Fed’s rate has held at a steady low.

Note the Federal Reserve rate increases over the past two years.

So, does this mean you should panic and commence building immediately? from another perspective Of coursenot. However, ifbuildingyou more than ever ’re already thinking of building, history has shown that all three factors outlined above effect in higher home costs.

So if you’re what, waiting are you waiting for?Contact us today, and we would love to talkdreamto you about building your home right here in Colorado Springs.