According to the Northwest Multiple Listing Service report for March, the inventory of re-sale homes and condos for sale across the 23 Washington state counties in their service area was down 23 percent from last year, which we all know, puts upward pressure on home prices.
The low inventory of re-sale homes also adds to the demand for new construction homes, contributing to price hikes there as well. But that’s not the only reason new construction homes are getting more expensive. There is also an ever-increasing cost of construction materials.
An article on ForConstructionPros.com says there was a 3.8% rise in the producer price index for goods used in construction from January 2016 to January 2017.
Material costs have continued to move upward each month of this year, according to the National Association of Home Builders’ article, “Cost of Building Materials in on the Rise.” The price of softwood lumber increased 2.3% in March after rising 4.8% in February. Softwood lumber prices have increased 7.2% from January to March of this year and are up 12.9% since March 2016.
Low inventory, rising prices – no matter what is happening in the housing market, the help of an experienced Realtor is more critical than ever to finding the home of your dreams.
Spring is the time so many owners put their home on the market and we can help alert you when something new is available and negotiate the winning bid over multiple offers, once you find the home you love. If you are looking for new construction, we have our ears to the ground as new homes are listed.
Over more than two decades, I have helped hundreds of clients find just the right home or sell their current one. Through the lows and highs of housing market cycles and the ups and downs of home prices and inventory, you need the skill and expertise of a trusted advisor to successfully purchase your home.
Just give me call at: (360) 701-4223 or email at Cyndi.Nelson2@gmail.com.