If you’re in the market for a new home and have been noticing a trend of increasing property prices across Alberta, you’re not alone. Over the past few years, several unique circumstances have contributed to rising home costs, largely due in part to a significant increase in the overall cost of construction. As a premier builder in the Central Alberta Region, the Abbey Platinum Master Built team takes pride in being honest and transparent with our homeowners, and to help answer some of the questions you may have about fluctuating home prices, we’ll explore two major factors that are directly affecting today’s housing market. Read on to learn more!
Rising Cost of Supplies
One of the biggest culprits that have led to newer houses seeing a bump in cost can be traced back to the drastic jump in the cost of supplies for builders. In 2020 alone, the cost of lumber skyrocketed across Canada due to a huge shift in demand for both renovations and new home construction. As the cost for basic supplies rises, homebuilders are finding themselves forced to increase the price of homes being built in order to compensate.
Supply Chain Management
It comes as no surprise that Covid 19 has caused numerous complications for almost every industry worldwide over the past year, and the housing market is no exception. As with above, it is not just the cost of supplies that have seen an increase, but also the cost of shipping and difficulty procuring key materials, alongside tariff fees, that have to led to steeper home prices. With suppliers charging more and more, or, being unable to fulfil orders for months at a time due to shortages on their end, homebuilders are left paying more for products in order to stay on track with build schedules and ensure quality results.
What Can We Expect Moving Forward?
The simple reality is, these kinds of increases and difficulties are less than ideal for both builders and buyers in today’s housing market. While there is no way of telling exactly how long the current challenges will last, the likelihood is that home prices will be higher for a little while longer until the market finds a way to self-regulate and better meet demands in the pandemic world. With that being said, it’s important to note that it is still possible to find your perfect home within a reasonable budget.
Whether you’re looking to build from scratch or settle into a home that’s ready to go, Abbey Platinum Master Built takes pride in offering homes at a wide range of price points all throughout Central Alberta. Our team of experts is happy to partner with you to find the best fit for your needs, as well as for your budget, and will help you face the challenges of today’s market with confidence. Learn more about finding your dream home with Abbey Platinum Master Built by contacting us today!