Frequently Asked Questions About Today's Housing Market
May 24, 2021
Today's Housing Market FAQ.pdf
What has created the lack of new home inventory in the Central Texas market?
Simply put, supply and demand in the marketplace. In-migration from many states to Texas coupled with an extremely strong job market has created unprecedented demand for housing. That demand is being met by an also unprecedented supply, material, and labor shortage across the entire homebuilding spectrum.
Are the lumber shortages and price escalations a function of the demand?
Absolutely. Strong demand, coupled with COVID-related lumber mill strains have outstripped supply capacities. As a result of that and related factors, lumber prices have, in some cases, increased approximately 350% in the last 18 months. As such, prices and valuations are rising quickly making a home investment very strong given the continuing strength of the Central Texas market. These same unpredictable price escalations are forcing new home builders to drastically alter operations in order to prevent material and labor costs from impacting home sale revenues.
How is Scott Felder Homes (SFH) addressing the situation, while still offering opportunities to new home purchasers?
Scott Felder Homes has temporarily suspended build-to-order homes and is now offering inventory home opportunities in every available community. This effort will allow SFH to begin construction of the inventory homes while monitoring material pricing and availability. Once costs become finalized for concrete, lumber packages, trusses, sheathing, and other materials, SFH will be able to price the homes for sale to prospective home buyers. While the initial delay of housing availability is frustrating, the continual flow of inventory home opportunities in the near future will provide SFH home buyers with ample opportunities across all prices ranges and locations in our market.