Tuesday, March 16, 2021

Homebuyers Canceling Contracts as Costs Soar

In what could be the first shot fired foretelling a slowdown in new home construction, homebuyers are putting building their new home on hold because they can no longer afford the mortgage payments.

Rising costs for lumber and other materials are causing new home contracts to be canceled, according to the National Association of Homebuilders.

Lumber costs have surged more than 170% over the past year, adding around $24,000 to the cost of a new home. Concrete, metal products, appliances, and other expenses are also increasing due to supply chain disruptions caused by COVID-19 shutdowns.

“First-time homebuyers are the ones that really drive the housing market,” Jerry Howard, CEO of the National Association of Home Builders, told FOX Business’ Stuart Varney. “It's a big problem.”

CLICK HERE to read the entire Fox Business News article

Gary Fleisher, the Modcoach, writes Modcoach News, Modular Home Coach and Off-Site Construction News blogs. 

Modcoach Connects matches Consultants with Clients. 

Contact me at modcoach@gmail.com

No comments: