HUNTSVILLE, Ala. (WHNT) – Whether you’re planning to build a new house or just doing some renovations if lumber and new windows are involved, some experts say you’re going to have to be patient.
Supply chain problems have most new home construction builders waiting months for even the most basic parts to finish the job.
Keith James a managing partner with Coalition Properties Group told News 19 that nearly everything that’s needed to complete a new home construction is on back order.
“Drywall, windows, corrugated materials and when you try to build fences. Things like that,” said James.
New home sales in Alabama since the start of the COVID-19 pandemic are at the highest rate in over a decade. The National Association of Home Builders representative in Alabama says that the biggest issue is how fast the inventory for new construction building materials is falling and the price is way up over budget. It’s driving up the price of the home and the mortgage rate once it’s sold.
“Taking that a step further, for the first-time home buyers, it’s hurt because of the price increase in lumber and the price increase in windows and concrete. Everything is up. It’s kicked them out of the market completely,” said NAHB Vice Chairman Alicia Huey.
“Think about this, a buyer that is looking to close in December. But guess what, that interest rate went up in January which was a $50,000 increase with interest rates. It’s a lot of factors involved. I call it, factors affecting performance and you are seeing it across the board,” added James.
Property managers like James say they are losing money every day. Before the pandemic, home renovation projects could be completed within a month. Now, these projects are months away from completion and there appears to be no ending in sight to the supply issues.
“We get excited then we want to get started right away. We want everything to be finished but the customers are just going to have to put that plan in place and know in three months or six months whenever we know that we can get the product then we can get started,” said Huey.
The name of the game is patience.
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