The Havasu real estate market is just as hot as its triple-digit temperatures in the summertime. Why? People want homes. Unfortunately, inventory here remains extremely low. But buyer demand and low inventory make up only two of the reasons we see Havasu home prices continue to rise. Over the past few months, higher material costs also factored into the mix as well.
Higher Material Costs Affects Home Buyers
Why the Increase in Material Costs?
During the pandemic, many homeowners around the country decided to tackle those home improvement projects they put off. Whether they added more storage or updated their kitchen, these all involved lumber in one way or another. Plus, new construction never slowed down (again, buyer demand remained high even throughout the pandemic). Lumber production slowed down after the bubble burst in 2008/2009. Before the pandemic, it had yet to reach its pre-2008 levels. So, lumber mills were unprepared for the demand we saw last year.
How Do Higher Material Costs Affect Havasu Home Prices?
Well, lumber provides the framework for Lake Havasu homes. But that is just the beginning. Contractors also use lumber to make the doors, window frames, cabinets, and flooring used throughout a home. Plus, drywall costs rose due to the higher material costs of gypsum. Other materials used in the construction of a home such as copper wiring and steel also soared by double digits within the last year or so (steel rose by 37% while copper wiring increased by 27%). Even the cost of land surged up quite a bit.
Unless we see a serious influx of materials in the next few months, Lake Havasu home buyers should expect to see prices continue to climb. That is just a fact we have to live with for at least the foreseeable future. When you are ready to look at what our Havasu real estate market has to offer, please feel free to contact me.