It is no secret that the US economy is rebounding. And with the uptick we are experiencing ripple effects on the housing market in Montana and Wyoming. People are motivated to buy existing properties and build new homes. The time to build is right now. Homeowners need to be aware that starting to build immediately can save money building in Montana and Wyoming. Why? Let’s look at the supply and demand curves for the building industry.
The country is beginning to realize shortages of certain building materials. Demand for building products has been low since the economic downturn in 2008 and suppliers throttled back production levels accordingly. With the lull in the market there was no need to keep an overstock of materials and wait for the boom. Now that we are in the early stages of another housing boom those same suppliers cannot keep pace with the current demand for their products.
A nationwide survey by the National Association of Home Builders (NAHB) revealed that suppliers of oriented strand board (OSB), wall board, framing lumber and plywood cannot keep the shelves stocked. In turn, the market prices for these materials is beginning to rise. Today’s rate of building is just above 50 percent of what it was in 2004. When the market grows to those same 2004 levels we could see huge hikes in material pricing. The same NAHB study shows that building materials today are already 5 percent higher than they were just six months ago.
So what does this mean for the homeowner? Build now. Seize the present opportunity to buy materials for your home at lower prices than they will be a year or two from today. It will take time for material suppliers to ramp up production to keep pace with the housing market. You can either wait for prices to stabilize and come down or make moves towards getting into your new home sooner than later. Save money building your dream home by breaking ground as soon as you can.