Relief may be on the way for those shopping for newly built homes
The rising cost of lumber has driven the price of new homes higher over the last few years but a new report shows that some relief may be on the way. Research firm Zonda noted in a report last week that lumber futures are showing signs of stabilizing and even decline, suggesting that prices for newly constructed homes could moderate in the coming months.
The vast majority, 90 percent, of home builders have reporting raising their base prices in mid-October from the month prior. Increased construction costs have resulted in builders raising prices on their listings by three to five thousand dollars over the last couple of months.
Heading in to the new year, builders remain concerned about their ability to keep up with demand. Lot shortages, labor issues, land prices and building material costs remain their biggest obstacles.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.
The vast majority, 90 percent, of home builders have reporting raising their base prices in mid-October from the month prior. Increased construction costs have resulted in builders raising prices on their listings by three to five thousand dollars over the last couple of months.
Heading in to the new year, builders remain concerned about their ability to keep up with demand. Lot shortages, labor issues, land prices and building material costs remain their biggest obstacles.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.