Market Report
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Building material prices climb even as lumber prices fall
Softwood lumber prices continue to fall in 2022, but the drop has yet to offset the price increases from the previous price surges caused by the pandemic supply issues. On top of that, additional building material price increases pushed overall material prices to climb again in August, up nearly 1%. According to the National Association […] Read More
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Not all housing markets are the same
As mortgage rates hurdled over 6% in September, the highest level on record since the Great Recession, buyers are starting to become more hesitant during their home search. Many buyers are even being completely priced out of the market. Concerns over rising interest rates, delays in project timelines, rising construction costs, labor shortages and other […] Read More
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Remodeling outlook optimistic despite poor economic forecast
While remodeling activity is expected to slow down during the potential economic downturn ahead, experts predict that the long-term outlook for home renovations is bright. Todd Tomalak, principal of building products at Zonda, shared this optimism during a recent webinar. The present market conditions suggest that the decade of 2020-2030 may be considered the “golden […] Read More
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Inflation impact on construction materials continues
Building material costs have continued their upward surge, though the pace may be slowing. According to the Bureau of Labor Statistics Producer Price Index (PPI), building material costs are up 12% this June compared to June 2021. This represents a moderating pace of price increases, although material costs have increased 42% since January 2020. Industry […] Read More
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Builder confidence stumbles as market conditions shift
Market headwinds are taking their toll on builder sentiment. Increasing mortgage rates, labor shortages and continued material challenges are proving to be roadblocks to home construction this summer, and homebuilders are feeling the effects. The National Association of Home Builders’ (NAHB) monthly confidence index reported a nearly record-level drop in sentiment in July. The index […] Read More
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Wait time for new homes increases
The timeline for new home construction is becoming noticeably longer in many parts of the country. This slowdown comes at a time when new homes are in high demand as the inventory of available homes for sale shrinks to a historic low. Almost two years of supply chain disruptions prompted by the COVID-19 pandemic caused […] Read More
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Building material costs impacted as demand falls from inflation
The price of construction materials for new homes continues to escalate going into summer. On top of already volatile supply chain effects still lingering from the COVID-19 pandemic, material costs are now starting to be impacted as inflation impacts most sectors of the economy. In 2021, the price of construction-related materials rose 15.9% throughout the […] Read More
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Consumer sentiment toward homebuying plummets
It appears rising interest rates pushed consumers over the edge when it comes to whether it is a good time to buy a home. According to Fannie Mae, the Home Purchase Sentiment Index® (HPSI) decreased by 4.7 points to 68.5 in April, its lowest level since May 2020, as surveyed consumers expressed heightened concerns about […] Read More
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State’s housing inventory continues its downward spiral
Minnesota’s housing market continues to hit new lows in the number of homes for sale, all while homebuyer demand remains strong. This has led to an even more intense home seller’s market where prices are hitting new highs with multiple offers on the table. According to the Minneapolis Area REALTORS®, the Twin Cities has just […] Read More
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Building material prices continue roller coaster ride
The price of material for new homes continues to spiral up and down as the supply chain remains unstable following the impacts of COVID-19 and the pent-up demand for new housing. Building materials prices increased 15.9% in 2021 and have climbed 18.6% since December 2020, according to the latest Producer Price Index (PPI) report released […] Read More
