LAWTON, Okla. (TNN) - Just like the real estate market, a home builder in Lawton said covid only caused a couple slow weeks and has actually given people a good reason to to find a new home, after being stuck inside and realizing their’s didn’t have what they need.
“People are putting a higher priority on housing, after they spent so much time at home recently. We see a lot of people are working from home now and they realized they have additional needs,” said Ron Nance, the President of Oaks Development.
Another benefit to people wanting to build a home is the record low interest rates.
“Those are fixed rate mortgages, that are there and in place for 30 years, so they can be paid off. These are historic lows we probably won’t see matched again,” said Nance.
With so much interest in building a new home... how has covid impacted the cost of materials?
“Things we supply for a home have gone up about 16 percent,” said Phil Kennedy, the Comanche Home Center Manager.
That's mostly lumber products, and the reason for the increase goes back to interest rates.
“With interest rates being where they are at, it’s not necessarily a supply chain being broken, not to say they haven’t had issues, but for the most part it’s the demand,” said Kennedy.
And for the most part, that extra cost goes back on the home buyer.
“Where we can, we absorb those. When we can sub items we do that, as long as we keep the quality up, but you can not overcome that total,” said Nance.
Kennedy said that shouldn’t deter people from building a home, especially with it likely being easier to sell your house as Lawton remains a sellers market.
“Even with cost of material going up, you will save that money back as you pay over time on your interest.”
Kennedy said those prices will likely remain until the supply and demand can even out.