Over a year has come and gone since the peak of the pandemic and we are still seeing the dramatic impacts of COVID-19 in every supply network. Some markets crashed, others – like the housing market – seem to be booming. So, is this the result of homebuilders having to scale back on building efforts during the crisis? Or, should we be prepared for this to be a long-lasting trend in the housing market? Through the surprises, longer timelines, and unpredictable supply of material, the luxury home market continues to flourish. Here are a few trends we have seen in the homebuying market for 2021.
Homebuyer demand has shifted and the call for housing has created a stronger thirst for homeownership. With many of us able to work from home more often, buying has been more desirable with the ability to relocate, millennials wanting to start families, and wanting to lock in the current low-interest mortgage rates. The luxury home market has seen an increase of interest, no doubt driven by opportunity. Luxury marketing reports show that there has been a rise in earnings and savings influenced by rising stock prices and last year’s restrictions that deterred people from spending a large quantity of money on travel, food, and retail.
Although we are finally seeing a rise in listings, the inventory levels are still significantly lower than pre-COVID-19 averages. This makes it harder to find a home without having to compromise. Having a high demand for such little stock also means that once you find a suitable home it is likely to be competing with multiple offers within days of it being listed.
It is extremely important, more than ever, to choose a reputable builder that has your best interest at heart. The lack of variety in homes on the market is discouraging. Tension is building with the competition of home seekers and compromise is imminent. For many reasons, families are choosing to build over renovating an existing home. Contractors have more options when it comes to getting materials in. Subsequently, buying a home that needs major do-it-yourself renovations may take longer with the material delays. Building a new home in this market may be what is best if you are not wanting to settle on the features that are most important to you. The opportunity for creative control and flexibility is second to none.
Of course, a huge concern is that material costs continue to fluctuate month to month. Choosing Kimberley Development means that you will not be blindsided by a sudden rise in cost. While other builders have chosen to provide variable pricing that could significantly increase as construction pursues, Kimberley Development has decided to maintain our fixed pricing. We have and will always provide a cost upfront. Choosing Kimberley Development means that the contract price will be guaranteed even when there are uncertainties in the supply chain.
Experts can only make predictions on the housing market. No one can pinpoint exactly what will happen in the coming seasons of real estate. While we do not believe that inventory will recover by this fall, the record-low interest rates will gradually rise, and consumers will become less risky with their offers. The inventory shortage on lumber is slowly fading but is struggling to keep up with demand. If homebuying is in your near future the best course of action would be to prepare now. Rapidly rising COVID-19 cases may surely affect the supply chain again, and it is best to prepare to meet your needs now.