Labor Costs Likely to Push Home Prices Higher

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Posted To: MND NewsWire

New home prices have been rising since 2012 according to CoreLogic’s chief economist Frank Nothaft. Prices in the spring of 2019 were up 2 percent compared to a year earlier, partially because of rising building costs. In an article in CoreLogic’s Insights blog, Nothaft quotes National Association of Home Builder (NAHB) figures that say about 60 percent of a new home’s sales price reflects the construction costs of the home. The major components of building costs are those associated with purchasing and preparing a lot, acquiring permits and inspections, hiring labor and buying materials. The last accounts for a large part of the overall structure cost and 2018 was a tough year for builders on that score. There was a significant price run-up in the two major components of framing, lumber and…(read more)

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