_________________________________________________________________________________________ Custom
Homes
Regarding any challenges that you see within the industry , could you describe what these issues are , and how are they impacting the process of project completion ?
The major challenges right now are pricing for materials as well as financing costs . There are less lenders willing to lend a large LTC ratio of a project , and lending is done at a much higher rate . The cost for goods is still elevated from pre-pandemic levels even though industry leaders were expecting a larger reduction . Some materials with long lead times are not worth it and alternatives are being used more and more as supply chain issues seem to not be completely resolved .
How would you advise other businesses to mitigate these issues ?
Businesses need to be very accurate with budgeting and planning , and not getting over zealous at this time . If you hold strict realistic standards , there is still plenty of opportunity . Always have some cushion for cost to build as well as lead times for materials . Do not be afraid to pivot as long as it does not sacrifice build quality .
How has the pandemic impacted the overall housing market ? Especially when it comes to land and home pricing ?
The pandemic created a weird era where inventory and rates were low for years , which drove prices up because of scarcity .
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