First the good news for home builders: The economy is rebounding, consumer confidence is on the rise, and new home construction and sales are slowly making their way back up.
So what’s the rub?
Prospective homebuyers are feeling a little bit of sticker shock, as many of the homes they saw last year about this time that are still on the market, have increased in price – some close to 8 percent.
Although finding increased sales prices may be a bit of a shock, it’s important for buyers to understand the reasons behind it.Fortunately, demand for new homes has gone up, which is great news for Kansas City, MO-based home builders, subcontractors, suppliers and retailers. However, construction costs have significantly risen as well in that same amount of time almost across the board; particularly for lumber which is up almost 18 percent. That means that suppliers’ hands are tied in terms of recouping some of those costs from builders like us, their clients.
In Kansas City, the rise in new home costs is coupled with updates to most sections of the Kansas City Building & Rehabilitation Code (Ordinance Chapter 18), which focuses on safety and efficiency improvements. The changes affect most trades, including mechanical, energy conservation, electrical, underground space, private sewage disposal and plumbing work, which will require more engineering, labor, and materials.
Nevertheless, what buyers should really focus on is the value and quality they are getting from home builders for the money – which won’t change.
Regardless of price fluctuations, up or down, professional, reputable custom home builders are dedicated to providing their valued clients with quality construction, beautiful, durable interior and exterior features and amenities, and top-notch customer service.
It’s a vow we’ve taken and hold ourselves accountable to every day. And in the end, it’s a win-win situation for everybody involved, especially the home buyer.
In addition to her role as Co-Owner and Operator of HBC Construction, Chris is also Vice President of the Home Builders Association of Greater Kansas City.