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Real estate market easing as prices drop for construction materials

As for the prices of existing homes, there is also some relief being seen there.
Credit: KIII

CORPUS CHRISTI, Texas — Some good news for potential homeowners, as a recent report shows that prices are down for some of the key construction materials that are needed to build a house.

This week, the Associated General Contractors of America reported that the overall cost for construction materials dropped last month. That includes items like lumber, steel and fuel.

According to the AGC’s Chief Economist Ken Simonson, it is a far cry from where we were just one year ago, when we were seeing some of the highest prices recorded in 50 years. 

“We’ve seen significant relief in the last few months, both on prices themselves and on delivery times with things like appliances that used to take a very long time, or even kitchen cabinets," he said.

And while any news of easing inflation is good news, Simonson said it could be temporary.

"Well, I do think things will continue to be mixed, unfortunately, and there is a lot of unpredictability," he said. 

Here in our area, the Coastal Bend Homebuilders Association told 3NEWS that their biggest concern is making houses more affordable. They said they are still seeing some products shortages, but it has gotten significantly better over the past several months.

As for the prices of existing homes, there is also some relief being seen there.

It wasn’t too long ago when bidding wars ended with houses sold just about as quickly as they were listed. But that, too, seems to have changed.

Many sellers are having to drop their asking price, in order not to leave their house just sitting on the market.

"The mortgage rate that we pay each month, that hit over 7 percent back in October. It was down to 6.15 percent in the news that came out today, so that is also a break that homebuyers would be receiving," he said.

It all adds up to what could be the beginning of a better year for those looking to make ‘Home, Sweet Home,” a little more permanent.

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