End of Year Market Update - December 2020
Guardian Homes has continuously hit record numbers in 2020 despite the COVID-19 Pandemic, rising costs, and material shortages. Historically, winter marks real estate's slow season but for the last 2 years, Guardian Homes has increased traffic and sales in November. Our team is looking forward to the new year with record-breaking home sales since 2010.
Guardian Homes is still continuing to operate throughout the covid-19 pandemic and is committed to doing its part to work safely. Our business has been deemed essential and we also take that seriously. The team is working harder than ever to provide the best service to our clients while utilizing video and virtual technology to mitigate social distancing concerns.
We believe the biggest challenge in the building industry is the current lumber shortage and rising material prices. We have seen the lumber prices double since the pandemic started in April. We want to assure you that we are doing our part to stay on budget and keep the cost of your home affordable during these times.
The increases in home building materials costs and material shortages are keeping the housing boom from taking-off. We also believe adding to the price of a typical new single-family home is keeping pace behind what it could be because some homeowners are waiting for the prices to lower. We believe until it gets back to a more normal environment, we will continue to see this negative impact on the home building market.
According to the NAHB’s recent report “Solving the Lumber Crisis,” the escalating prices are due to there not being enough production. Many mills reduced production when stay-at-home orders were enacted. Meanwhile, demand for lumber accelerated.
Random Lengths Framing Lumber Composite, recorded that lumber prices peaked above $950 per thousand board feet in mid-September — a 130% increase from April, but has since been on a slow, downward trajectory. For the week ending Oct. 16, prices were close to $750.
“We have seen the demand for new homes increase rapidly but we want to appropriately plan new construction projects. We also have experienced longer wait times when ordering materials and want to be mindful of lumber and other material issues that are currently happening,” said Kaleb Mattingly.
Personally, we have seen a couple of contracts fall through, due to buyers backing out because of the pandemic. We understand every individual’s situation is different, which is why we are prepared to work with you through these unforeseen times.
In terms of actual showings, our real estate professionals have been busier than ever and utilizing all forms of client communication. The demand for real estate in Eastern Idaho is higher than the national average. Boise, Idaho is Forbes #1 City on The Hottest Housing Markets Right Now In 2020, and we too are seeing high interest in Eastern Idaho.
Forbes also shows data that states, by the end of September 2020, the new median home price in Boise was just under $430,000, an increase of more than 20% in only two years.
It is no surprise that Eastern Idaho is similarly seeing a rise in demand for new homes and home values increasing. Guardian has closed on 35 houses from April to November 2020. This is up 25% when compared to this time last year?
“We can only build as fast as materials are coming in and we want to build homes that only stay on the market a couple of days, ” We know we can do this because our sister company, Odyssey Homes, sold each of our lots in under a week.
According to Forbes, the median list price for a home in the Boise area was around $350,000 in September 2018 and rose 20% by the end of September 2020. The new median home price rose to the high $420s and Boise’s supply of homes has gone into freefall.
We will continue working on all fronts to make sure homebuyers have the best quality products and service from our team of luxury home builders.
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We are dedicated to giving you the best service possible. There is a reason why we have a reputation for being the best custom home builders, and soon enough you'll know why. Building quality homes is our specialty, and we look forward to working with you!