Boise Real Estate: Construction Costs Are Rising
Idaho building contractors say construction costs are rising.
Costs for products related to petroleum, such as roofing and PVC pipe have already increased, along with other items used in construction, including diesel fuel and equipment tires.
67% of Idaho building contractors believe that prices on key materials will increase by about 10% in 2012, while 26% of those contractors expect prices to increase between 11% and 25%.
As always, supply vs. demand is playing a part because many suppliers reduced inventories and production capacity during the downturn of the past few years.
To meet increased demand, those suppliers must now add capacity, which results in higher costs that are passed on to contractors.
Those higher costs eventually get baked into the sales price of a new home.
If you’re considering buying a new home, do it now while costs and interest rates remain low.
Source: IdahoStatesman.com article
April 3rd, 2012 Posted in Inside Real Estate, New Construction Market Stats
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