We’re starting to see an increase in the number of new and remodeled homes coming on the market. With the foreseeable rise of construction costs and real estate values many homeowners are feeling that this is a better time to remodel and/or build than in the future. There’s currently a serious shortage of labor and materials in the homebuilding industry. Two years ago contractors were short on work and willing to accept wage cuts while many had to leave the industry entirely. The builders that remain are now hunting for skilled labor and are seeing the cost of materials beginning to rise. The extra costs incurred by these builders and contractors will be passed on to the consumer.
With more remodeling and building going on in the Santa Barbara area there is a silver lining for homebuyers. In a high cost building environment it’s less expensive to purchase an already remodeled or new home than it is to pay for remodeling or new construction out of pocket as an owner-builder. Buyers that find remodeled homes they truly like come out ahead. Owners rarely recoup their remodeling costs when selling, although some like to believe they do. The profit a seller makes is more a factor of market appreciation which changes according to supply and demand.
With the high cost of just about everything in today’s markets it makes sense to sit down and carefully consider all of your options. I appreciate the opportunity to be of assistance. Thanks for your inquiries.