Is now the best time for you to sell?
The high costs of building a new home in California is driving real estate market values up. In addition to basic supply and demand, several factors influence this:
- Materials Prices: Recent supply chain interruptions have led to a massive spike in prices of not only wood and timber but also items like household appliances, lighting fixtures, tile, and fasteners. Estimated that these cost increases have driven new home costs up $20,000-$30,000.
- Labor Shortage: With everyone staying home, there is a shortage of available laborers. Lack of labor slows down the building process and limits the number of new homes that do make it to the market. Additionally, those laborers that are available to work now command higher wages to complete the job.
- Fees and Regulations: It’s no secret that California has one of the most complex building code infrastructures to navigate. These regulations include environmental impact studies including their effects on noise and lighting pollution, increased traffic implications, and effects on protected indigenous species. Local municipalities also charge developers “impact fees” to generate revenue for roads, schools, parks, and other public services. In 2015, the average impact fees were $23,455 per single-family home but in the state.
When the costs of building a new home rises, so will the prices of existing homes to fill the supply gap in the market. As the labor force returns to work and material supply chains begin to stabilize, the spike in cost of building a new home is projected to relax by the end of the year. Selling your home now takes advantage of this historically lucrative market and allows you to maximize the amount of money you can get for your property.
If you are in a position to take advantage of today’s historically high market values, this is yet another reason to act now and let us help you get your home listed.
With over 35 years in the home selling business, Ultimate has successfully predicted many market trends and, right now, our recommendation is SELL! SELL! SELL!
WE CAN MAKE THE SALE OF YOUR CURRENT HOME 100% CONTINGENT ON YOU FINDING THE HOME OF YOUR DREAMS AND IF YOU DON’T FIND IT, YOU DON’T HAVE TO MOVE.
Let us streamline the process of maximizing the profits on your current home and get you into the home of your dreams! Our direct line (714) 203-1669 or send an email to office@UltimatePropertiesSold.com.