The effects of inflation are felt locally in the housing market

FARGO, ND (Valley News Live) – There are lots of new developments all over the metro. But with inflation and rising interest rates, construction could become difficult for those looking for their custom home.

“Over the past two years, we have seen significant price increases on many commodities: wood, metal products, as well as products that generally don’t fluctuate as much as they have,” says Elliot from the Fargo-Moorhead Home Builders Association. Steinbrink.

The rising costs associated with building a home are getting more and more expensive.

Experts say it could potentially make or break someone’s building plans.

“People have to make decisions very quickly. As we get price increases, we really motivate our customers to make decisions. Then we can have materials ordered and they don’t recognize those price increases,” says Steinbrink.

He says the price changes came sporadically.

Homebuilders used to anticipate price increases in the spring, but now, over the past two years, prices have risen steadily

“Some people choose to wait to see if prices will come down. We’ve also had people recognize that interest rates are going to keep rising, so they choose to pull the trigger when they realize prices aren’t going to come down,” Steinbrink says.

He says that even though prices are rising, the products and materials that builders are looking for are still very hard to find.

“Windows and appliances are the biggest sticking points we’ve had over the past 18 months,” he says.

Wait times for windows and appliances have gone from two to three weeks to 16 to 18 weeks.

High-end devices are available in 12 to 15 months.

“Ordering devices even before digging the foundations. We order garage doors before digging the foundations. So we can stay one step ahead,” says Steinbrink.

Steinbrink says if you’re looking to build a house, the best advice is to plan ahead.

“Prices are going to keep going up, and interest rates are going to keep going up. You have to choose what is best for you, the best financial decision or the best family decision to make sure everything is in line with your goals,” he said.

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