Home hunters are willing to pay more than asking price as a shortage of building materials has pushed the cost of new homes to unprecedented levels.
“The waiting list for residential developments is so long and heavy,” said Ryan Pottoroff of Wilson Homes.
Pottoroff attributes a combination of government stimulus money to low interest rates and the demand for additional space as more people work from home, buyers seek to improve their living conditions.
But because demand for new homes has reached record highs and lumber remains scarce, builders like Wilson have to hand over the keys to buyers without everything being completely finished.
“People will have to move into homes without fences. They will always have them. They will have to close the escrow without them just because there is a shortage and they cannot install them,” Pottoroff said.
Jeff Perritte, owner of White Pine Lumber in Fresno, says he’s starting to see lumber prices come down as more factories ramp up production, which should help frustrated buyers and could do lower house prices
“I think there will continue to be demand, the pace will slow down to a more manageable rate and supply issues should be alleviated due to the slower pace. So I think we will come back to before the pandemic in regards able to take care of clients, ”Perritte said.
Experts tell Action News they don’t expect the local housing boom to slow down anytime soon, as pent-up demand for new homes is expected to carry the local market through the summer and beyond.
Copyright © 2021 KFSN-TV. All rights reserved.