Bill Roark

There is a crisis occurring not only in America but around the world! Realtors and builders are experiencing unprecedented demand for housing and prices are rising at unheard of rates, with wages and salaries not able to keep up, an inevitable crisis is around the corner.

In the next two weeks I will examine the coming crisis, it’s causes and some alternatives. If you have not checked the value of your home today you may be shocked. The National Association of Realtors reports the price of an existing home jumped 23% compared to a year ago. While that level of price increase may not have occurred in our Northeast Louisiana Market it has seen a significant increase. While we used to see $ 100 to $125 psf prices we are now seeing $140-150 or more psf of heated area. For a 1,500 sf home, that can represent a $75,000 increase. The increase in the price of new homes has resulted in a similar increase in the price of existing homes.

The increased cost of new home construction has multiple causes such as the increase in the cost of lumber and other students the increase in subdivision development costs. I was recently quoted a price of $500 per linear foot for developing a street with utilities. The builders are caught in the middle. Some custom home buyers are now refusing to pay the final cost because it is so much higher than the original bid. This is also a global problem. In Sydney, Australia home prices jumped an average of $870 per day during the 1st Quarter of 2021. First time home buyers in the UK are paying an average of 32% more than last year.

Now here comes the government with a solution for all problems. The Biden administration is working to boost new home construction. Canada’s government has pledged to spend billions building 100,000 new homes for urban middle-class families. The Netherlands will soon designate areas where investors can no longer buy homes to rent. “

QUOTE OF THE DAY: “Is Texas planning to secede from the US? Not yet according to Senator Ted Cruz (R-Texas). But that might change if Democrats fundamentally destroy the country”. Cruz said to students at Texas A&M University.

On the Local Scene

O’REILLY AUTO PARTS has purchased land on Thomas Road, West Monroe next to West Feed Mill to build a new store.

Former FRANKS RESTAURANT on Tower Drive, Monroe will be renamed and become a breakfast and lunch only restaurant.

Bill Roark is a Commercial Associate Broker at Tri State Properties and may be contacted by email to bill.roark@reagan.com.

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