Builders Raising Prices As Housing Market Heats Up
FRISCO (CBS 11 NEWS) - It needed to have an open kitchen, lower ceilings, and be energy efficient. Jessica McLean had the perfect home built in her head for a long time. She and her husband didn't plan to build it though, until she heard how fast the price for it was going up.
"They go up at the end of the month," the salesman told them at a development in Frisco. "And we just didn't want to wait any longer."
Buyers, builders and realtors in North Texas say prices for new home construction are climbing every 30 to 60 days. It corresponds with 11 straight months of price increases overall for single family homes in North Texas.
"Probably 60 to 70 percent of our buyers right now are speeding up their process," said realtor Barbara Van Poole.
The McLean's sped up their plan by two years, choosing a lot and selling their current home in just three weeks.
"We had the opportunity to have our dream home," McLean said. "And we just felt like we had to jump in now because if we don't this may not be a reality for us."
Custom home builder Sean Knight said builders are reacting to demand they haven't seen for years.
"I don't think you're seeing price gouging by any means," he said. "It's the old economic rule of supply and demand."
There are far fewer lots available for building he said. The housing labor force left, making it difficult now to find skilled employees to work. And materials that haven't been needed much for years, are now suddenly hard to come by.
"Now that we're getting into the busy time of the year, you're going to see extreme shortages," said Eldad Block, who runs Big D Lumber in Dallas.
Block said some materials he used to be able to get for builders in days, are now taking weeks to get in.
Van Poole said the prospect of rising values should be a comfort to buyers, who have been fearful of buying before the market hit the bottom. Prices are still a good she said, compared to other regions.
"Deals are getting harder and harder to find. Values are still very good though."
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