2021 Construction Materials Prices are on the Rise
While we're all pleased that historically-low mortgage interest rates are poised to propel the real estate market forward in 2021, it's important to be aware that their are also market factors which will put a dent in new construction profits this year.
One of the biggest challenges faced by builders in 2021 will be the cost of building materials. The second-home market in northwest Wisconsin is not exempted from those challenges.
Construction-related commodities like lumber, copper pipe and wire, steel used in concrete rebar and other building materials are poised to rise in price. Alongside those price increases will be rising costs of millwork, PVC pipe, insulation and electric panels.
Even if you're not buying or building a new home, expect to see rising price pressure on existing dwellings as a result of these construction commodities moving upwards in price.
The pandemic is partially to blame. Another factor is stress on supply chains and delivery challenges. And these influences are further affected by increasing builder demand and the recent wildfires in California and elsewhere.
In the coming year, be prepared to see these inflationary factors have an influence on home prices throughout Ashland and Bayfield County Wisconsin, including new construction in Bayfield, Cornucopia, Washburn, on Madeline Island and throughout the entire Chequamegon Bay area.
Comments(2)