FARGO, ND (Valley News Live) – There are many new developments all over the metro. But with inflation and rising interest rates, building could become difficult for those looking for their custom home.
“In the last two years, we’ve seen significant price increases on a lot of commodities: wood, metal products, as well as products that do not typically fluctuate as much as they have,” says Homebuilders Association of Fargo-Moorhead’s Elliot Steinbrink.
Increasing costs associated with building a home are becoming more expensive.
Experts say it could potentially make or break someone’s building plans.
“People have to make decisions very quickly. As we’re getting price increases, we’re really kind of motivating our clients to make decisions. Then, we can get materials ordered and they do not recognize those price increases, ”says Steinbrink.
He says the changes in price have come sporadically.
Homebuilders used to anticipate price increases in the spring, but now, over the past two years, pricing has been steadily climbing
“Some people choose to wait to see if the prices are going to come down. We’ve also had people who recognize the interest rates are going to keep going up, so they choose to pull the trigger when they realize the pricing isn’t going to come down, ”says Steinbrink.
He says even though the prices are increasing, the products and materials builders are looking for are still very hard to come by.
“Windows and appliances are the main sticking points we’ve had over the last 18 months,” he says.
Wait times for windows and appliances have gone from two to three week wait times, to 16 to 18 weeks.
Higher end appliances are 12 to 15 months out.
“Ordering appliances before we even dig foundations. We’re ordering garage doors before we dig foundations. So, we can just stay ahead of it, ”says Steinbrink.
Steinbrink says if you’re looking to build a home, the best advice is to plan ahead.
“Prices are going to continue to go up, and the interest rates are going to continue to go up. You need to choose what’s best for you, best financial decision or best family decision for you to make sure everything is in line with where your goals are, ”he says.
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