Building Costs and Why Now is The Time to Build a New Home

There’s so much to be excited about this time of year. From the return of migratory birds to long, sunny days, it’s truly a wonderful time of year. It also happens to be the ideal time to begin the home building process. Just as the U.S. economy is slowly emerging from the cold cocoon of recession, the housing industry is also jumping to life like a tree frog on a rainy spring day. But, this growth in demand is now beginning to lead to increased building costs and material costs, which is why now, more than ever, it's time to get that home project started! Drywall material costs have more than doubled in some regions over the past two years. And, the compound mud and fasteners used on the drywall to create a finished wall are about 30% higher today than a year ago. While these small components may not seem to be that big of a deal, they can certainly add up, and they are continuing to increase month over month.

One other material that is experiencing large cost increases is OSB (oriented strand board) which is a component in sidewall construction, and also often in SIP panel construction. OSB sheets are now about two and a half times more expensive than they were last year.

Post and Beam Great Room With Stone Fireplace

Many builders report that suppliers have let their inventories run low, and have yet to begin stockpiling at the same levels they had in the past. This is causing delays between ordering and delivery. “That said, builders’ outlook for the next six months has improved due to the low inventory of for sale homes, rock bottom mortgage rates and rising consumer confidence,” National Association of Home Builders chief economist David Crowe says. And we agree with Mr. Crowe. The low mortgage rates which are available today make for very compelling reason to begin the new homebuilding process now. Because, not only can mortgage rates increase, but we’ve already seen material prices begin to increase as demand grows. So, we feel the urge to (at the risk of sounding like a cliché) point out that now really is the best time to get going on building your new home before prices and mortgage rates go up. Carpe diem, and spring forth to take advantage of the current environment! Ready to get started on your building project? If you're ready to begin your new home building project contact Timberpeg.