New Housing Prices are Through the Roof!
February 24, 2021
I just wanted to talk about what's happening in the new housing market, locally and continentally. If you've been watching new home prices around Prince George over the past 6 months, you will have seen steady inceases, beyond what we've been seeing in the used housing market (which in and of itself has seen significant rises). So what's driving these price increases in new housing?
There are multiple factors adding fuel to the fire, on top of the already high demand for housing and lack of inventory. There have been significant rises in lumber prices, which are continuing to climb (this was previously estimated to add approximately $30k to the average new build). The number of housing starts have increased across our continent, causing a shortage of lumber. Tariffs to the US have also been lowered, so more softwoods are being exported, causing further shortage in our own backyard.
Another main factor within Prince George is the lack of developed land. If you've been looking for a residential lot within the city to build on, chances are you already know it's tough to find. As new homes have been bought up at an increased rate, we can expect to see lot prices rising this year when they are made available.
On top of those there is also the cost of just about every other building material that's rising from tin (adding to the cost of heating and ventilation, siding, soffit, eavestroughs etc.) to insulation.
Word on the street, from chats with local builders is that what we've seen so far is just the beginning. But suffice to say - if you're looking into new residential housing - buy it yesterday.