Everything Homebuyers Need to Know about the New Tariffs and Home Construction Prices
Most of the times, real estate buyers will not look for a new house to move in but will either build their own home or renovate one to live in or sell. The real estate buyers are required to use the services of local construction companies in the above situations. Whether you have a simple project or a large-scale project, it is vital that you enhance your relationship with the builder throughout the process. The US tariffs on imported Chinese goods worth about $16 billion took effect in August 2018, and the products that are used in the home building market were among the goods focused on. From the expectations, about $200 billion worth of Chinese goods are set to be levied. At this time of the year, the tariff is a 10%, but at the end of the year, experts argue that it could escalate to 25%. This article is going to help you discover more about what this means.
For homeowners, it means that it would cost you more than your budgeted to repair your home. This should enable you to be more flexible to the idea that the figure that will be provided by the contractor may change and will be included as an escalation clause in the official documentation. Homes are now selling higher than the average prices around the country as the real estate market booms. This provides investors with more cash to invest in new projects.
As more tariffs are rolled out, builders are quickly completing their projects on time even so that to avoid the increases in taxes. Builders are looking for affordable ways of constructing houses, and this is why experts are now maintaining that most builders will concentrate on cost savings. The tariffs have already affected the prices of Canadian lumber and other imported goods such as steel and titanium, and it is expected that this will increase the prices of home fixtures such as HVAC units. Now that the availability of quartz will be affected, this will limit homebuyer options. The rising prices have also affected those who want to rebuild and recover their houses after natural disasters, though this is in the short-term.
The price rises are of great interest to more homeowners who are now seeking affordable housing options. The real estate experts now have to inform new buyers of the changes that are happening in the industry. The agents can, on the other hand, ensure that buyers are educated before making any move.