Did you know, material and labor costs are projected to increase from “4% to 5% monthly,” according to the President of the Austin Board of Realtors.
How does this affect you?
If you are a seller, this is good news for you! With home inventory being at 0.4 months, and buyer demand staying constant is perfect for current homeowners to bet their home is appreciating in value. Furthermore, the rising cost of building a new home is increasing the perceived value of resale homes, as buyers see it as a safe and alternative quick move-in option.
If you are a buyer, this is another bad news for you. Rising interest rates, low inventory, and continued buyer demand is squeezing buyers. Now, new home builders are limiting the release of homes at the frame stage to sell at a confident price, even though cost escalation is a possibility.
If you are an investor, then it depends on what your investment goals are. The average home price is close to $499,000 and interest rates are close to 4.5% further reducing an investor’s bottom line. The low supply is making your entry into the market as competitive as is for buyers.
