Market Conditions for Home Builders
Everyone is asking us what are the market conditions what are you seeing are you slowing down at all, no we are not slowing down we are still crazy swamped
So we feel like that’s why we’ve been steadily keeping busy and we’re hopeful that the rates will you know go down a little bit which who knows there’s no crystal ball right but I do feel you’re right that everybody’s just still like okay well we can eat a house we’ve got to be for work.
Builders are Backlog
Rent’s not any cheaper, the thing with the market conditions you’ll notice if you’re shopping, you’re going to see all Builders are backlogged we’re all still that funds and it’s not necessarily as much of volume of people, there are several buyers, we’re closing a buyer every single week.
Causes of Backlog
You’re also seeing backlogs because of the market conditions you are still seeing shortages and materials. Back ordered items, and discontinued items, there is still a labor shortage.
It’s like you get to work but it is they’re still and it’s not just in the in our industry obviously everybody knows so that is the nice thing that most folks that are coming in they do realize what’s going on in the world right now and they’re very patient.
So they just being upfront and say look this is our build time now this is the new Norm for right now we’re not used to freaking people out now they’re conditioned to it because they’re hearing in everything not just hearing from us it’s at all you know you know every Builder that they’re shopping and you know back in the day we were 120 days 160 days out that’s just not the case anymore and that’s okay you know we just have to go with it yeah most Builders are six to 12-month backlogs.
What is meant by Backlog
What we mean by backlog is, if you wrote a contract today with Cannon Builders you’re not closing till June and that’s just where you fall in the Builder’s schedule. That’s not necessarily where you’re going to close you may move up your may move back it’s all dependent on the contractor.
First Development Stage
So the first development stage happens then we were waiting for PVC to come in so they could run their electricity through the lateral. There was a shortage of conduits. The piping went in now they’re making sewer and water connections to the streets from the actual home site so once we get all of that done um you know and we were see of everyone else it wasn’t anything that Canon could have done to speed things up.
Because by all means, we would have we’ve got all but three or four of the Home sites that are spoken for.
We promise it’s coming we have to get approved by the city now for all the scope of work that’s been done and once that happens then it goes to the next Board of Aldermen meeting. The Board of Aldermen gives it their blessing which we call dedication of the community then we will be able to have pricing released why release pricing now everybody’s like well can you at least tell me what the price of the house is going to be unfortunately we can’t because who knows what material will be.
So as opposed to guessing and then calling you and saying oh guys guess what it’s going to be about fifteen thousand dollars higher than what you expected we priced a bunch of folks out at what was then our current uh pricing added 10 to 15 000 to it and we’re just keeping our fingers crossed that we’re close but there’s no good way to do it um but there was so much need for information on the community that we just handled it the best we could so we appreciate you hanging in there.
Material and Labor Shortage
We appreciate the calls we just hate saying hey it’s this it’s that it’s two more weeks well that’s looking at what they have left to do going okay that shouldn’t take more than 10 business days you know but realistically then when you come to find out that there’s a material shortage or a labor shortage then you’re like so if you guys could just hang tight with us I’m hoping in the next 30 days we will be writing some sale contracts over there or at least releasing pricing.
We know that’s not two weeks which is what we’ve been telling you guys for the last few weeks it really is the story of our life such as we feel like and it’s everybody it’s yeah we all feel it so but here’s the thing with the backlog you guys even waiting 30 more days it’s not going to delay where you’d be in closing because what’s going to happen is you’re going to just sit in that schedule either you can come to sit in it now and wait for the ride to start or you can sit in in 30 days and wait for the ride to start we would rather wait and know exactly what my numbers are going to be as opposed to guessing and having true to form.
It’s getting Positive
So on a positive note because that sounds like it’s positive it’s getting positive we do have a limited amount of our Magnolia Unity which is insane I can’t believe how quickly those houses are actually born just beautiful we love the houses over there but they I am definitely doing and I tell you why because my display was supposed to go shiny new display but guess what these days off so we have been and I say we Shelly has been redecorating the display here and it is looking gorgeous.
Cannon Builders have been in business for over 50 years and continue to be a leader in home building serving Lincoln County and surrounding areas.