05/26

Builders Setting Restrictions for Home Construction

This isn’t news – the real estate market is hot, and construction is trying to keep up with homebuyer demand.

Rising construction costs haven’t been helping builders; items such as appliances, cabinets, and Sheetrock are causing delays in projects. To combat this growing problem, builders are changing up the way they handle requests.

According to the National Association of Home Builder’s survey conducted in April, 63% of builders nationwide are limiting the number of contracts they sign each month, and some builders are accepting bids for empty lots and contracts.

Other builders are trying to protect themselves against fluctuating prices – like including opt-out clauses for both the builder and buyer, since it’s getting more and more difficult for builders to give you a hard price.

The new hoop to jump through isn’t trying to sell homes, but rather, trying to build homes.

For more real estate industry and economy news, stop by Pacific Alliance Title’s Blog.