NOW IS THE RIGHT TIME TO BUILD
First it was toilet paper and most recently, lumber. Unprecedented supply shortages have been making headlines. Lumber prices went through the roof after government shutdown orders halted lumber production at both domestic and foreign mills. But as people waited out the pandemic at home, they wanted more space and low-interest rates meant they could get it. Suddenly, everyone was building and remodeling.
Despite some supply shortages and volatile pricing, now is a great time to be a homebuyer. Don’t let the headlines scare you. The real story is that interest rates are extremely low, making it the best time to lock in an excellent rate. And while these rates are predicted to stick around a while, eventually they will go up and give homebuyers less power.
Supply shortages are causing some disruptions. For example, this summer there was a time when the entire state of Alaska was out of white primer. The state has also experienced short- ages of other paints and insulation. However, these are short- term problems that create minimal delays. Locking into a low interest rate lasts 15 to 30 years and has the potential to save you thousands of dollars.
Waiting any longer to build might mean an even longer wait for getting the keys. Doors, screens, windows and garage doors are taking months to be built and delivered. We’re putting in orders as soon as plans are in place to get them in time. It’s unknown when the turnaround time will improve especially because the homebuilding industry is also facing a labor shortage.
The homebuilding industry is facing a unique set of challenges but we’re doing our best to communicate everything going on with buyers. Low interest rates continue to give Alaskans great opportunities. Despite some unknowns, the pandemic made many Alaskans realize the challenges are easier to navigate when you’re in a home that you love.