Although lumber prices are slipping on the futures market, building material costs are still through the roof and in short supply, and demand for new and older houses is strong despite higher prices.
“What’s really happening is that inventory is so low that it is making demand even higher,” said Kaci Lynch, new owner of Coldwell Banker Excel. “New construction home builders are having a hard time keeping up with the pace as prices increase with supplies. Most home builders have a wait list.”
She said some builders are pulling back because prices for materials are increasing monthly so they cannot provide an accurate price for advance sales. Instead, they are waiting until framing has started on a house before listing the house. Others are not doing new contracts.
Coldwell Banker represents Arnold Beck Construction Inc. and Bailey Homes, and they “don’t list until they are framed. They are not doing any pre-solds,” said Lynch, who acquired Coldwell Banker Excel from James Winer earlier this year.
Currently, the median home price in Elko is $320,419, and home prices in Elko have gone up 11% in one year, or about $35,100. Houses in Spring Creek have gone up 17%, or $51,900, in a year’s time, with a median price of $304,912. Countywide, homes of all types have gone up in price by 12.4% to a median price of $300,941.