A sharp rise in building permits and a decline in buyer traffic at model homes gives you more choice with less competition when you build new.
However, the price of new construction is not going to drop anytime soon.
Here are the details …
Building Permits Rise Quickly
The chart below shows how building permits for single family homes have increased in the first half of 2021 compared to the same period last year.
Multi-Family permits have dropped by almost 50% in Columbus. This indicates a major slow-down of apartment construction in Central Ohio. It will likely push rents even higher.
While Columbus is the fastest growing city in Ohio, new construction lags far behind popular tech hubs, such as Austin, Nashville, and Charlotte.
Buyer Traffic Falls in July
According to NAHB (National Association of Home Builders) chairman Chuck Fowke “Buyer traffic has fallen to its lowest level since July 2020″.
The main reason: “prospective buyers are experiencing sticker shock due to higher construction costs.”
The Cost of Construction Climbs at a Record Pace
While the price of lumber has fallen to pre-pandemic levels since its peak in May, the overall cost of building materials has increased by 19.4% over the past 12 months. This does not include the cost of labor, land, and permitting.
What Does It Mean For You?
The price of new homes will continue to rise every month. If you can’t commit to a contract now, you’ll have to pay $10,000 more next month.
Local builders still have waiting lists. They only release a limited number of lots every 30 days.
If you are planning on building, lock in your price now!
There’s a good chance you will have positive equity when you move into your new home in 8 months.
If you are considering new construction, Call or Text me at (614) 975-9650 for a free consultation!