Why You Still Aren’t Seeing Home Prices Decrease

For over a year, there has been an enormous increase in the amount of people looking to buy both pre-owned and new-construction homes. Sometimes, the act of buying a home can simply feel like it’s just another stepping stone in your life, but it’s much more than that. Owning a home instead of renting saves you money in the long run, and this has always been one of the key factors that make people especially keen to buy rather than rent. 

With housing prices steadily increasing over the past year, many are wondering if they should hold off on buying a home at this time—how could prices not start to decrease in the near future? If you take this mindset, you might be waiting longer than you hoped, though. With different factors playing into the price of homes, it doesn’t look as if they will quickly go down, and you could potentially lose more money by waiting. We want you to have the facts, so at McGuinn Hybrid Homes, we’ve put together a few reasons as to why housing prices aren’t guaranteed to drop in the near future.

High Material Costs and Shortages

If you’ve been looking at buying a house, you’ve probably already heard that building material costs are a major factor as to why home prices are high at the moment. Lumber prices are slowly dropping, and this might make you believe that home prices will then automatically drop as well, but this isn’t what we’re seeing. Since the cost of lumber has been incredibly high for a long period, it will take time for the suppliers to catch back up on the revenue they lost. This means that builders will continue to see a high cost for these materials until the suppliers are able to recover and get re-secured with their own finances. On top of that, prices for other materials such as copper and steel haven’t seen a dip in costs and are still seemingly hard to come by, which will continue making home prices higher than we had grown accustomed to a few years ago. 

Increased Cost of Labor

In the home building industry, the high cost and shortage of materials began a snowball effect on other parts of the business. Toward the beginning of the pandemic when there was a surge of new clients looking to become homeowners and build new homes, builders had plenty of employees to handle the workload they were being given. Once material shortages arose, though, it was nearly impossible to keep them. Due to this, many builders have raised the salaries for their workers in order to secure employees, which in turn, leads to higher priced homes. Now we are still seeing a huge demand for construction workers across the country.

Finding Your Dream Home

With home prices appearing to stay stagnant in the near future, it’s especially important to choose the right builder to work with to ensure that you’re getting the fair prices you need during this time. That’s where we step in. At McGuinn Hybrid Homes, we’ve spent over 30 years building beautifully crafted homes in communities around Columbia, South Carolina, and we want nothing more than to help you on your journey to become a homeowner today. Contact us online to find your dream home within our newest upcoming community.