ANNA — The year of 2022 price chaos is finally over.
“As we look toward to 2023 spring time, the progress of the construction industry looks promising. We at Eisenhardt Homes and our clients have gone through the trenches to navigate the crazy lumber markets, prices of our windows, doors, roofing, siding, concrete, plumbing, electric, HVaC changing literally overnight,” said owner Corey Eisenhardt. “I’m not sure we have seen the last of the economic failure that the new construction housing market has to go through because of the rising interest rates, but we are plowing through it head first.”
His report continues:
Eisenhardt Homes came out of last year strong. We have multiple homes to start come spring time, with multiple remodels and additions on the books as well. The office is swamped in getting new clients through the initial process of building their dream home. We also have multiple people calling and emailing about new projects weekly. The interest rates haven’t put the brakes on new construction and remodeling. We have seen the lumber market fall and come down to normal pricing that was before the chaos of 2021. I actually don’t cringe every time I see the lumber bill for the month!
Electric, Plumbing, HVaC hasn’t seen the turn down on pricing just yet. The materials are still tough to get and pricing is still higher than it was a year ago. We just need to stay patient and hope that it will curve and come down. Naturally I get calls about people asking how the pricing of new construction is. I respond by saying that the lumber has come way down, but everything else that is needed to build is still high. So, in reality the pricing of constructing anything hasn’t lowered much.
There’s a lot that goes into the construction business that many don’t realize. We have many ways that expenses in a construction business are shared. Between building materials, all the sub-contractors (electric, plumbing, HVaC), labor, vehicles, gas, tools, equipment, fuel for the equipment, to name a few. The gas and fuel bill rose higher than I’ve ever seen it. That naturally had to be looked at when dealing with pricing as well. Our equipment prices have skyrocketed, which leads to higher overhead and expenses when pricing out jobs. All in all the expenses are higher when dealing with pricing and obviously needs to be accounted for in the home building and remodeling contracts.
I have good communication with all the sub-contractors and salesman we use to make sure that my pricing is on point and accurate. I question my clients rigorously to make sure I bid the projects thoroughly. I want them to have a fun and relaxed experience knowing my pricing during the project is fair and accurate to there needs and wants.
I was able to add another team member at the beginning of 2023. The team at Eisenhardt Homes are going strong and looking forward to the coming year. We completed five homes, five remodels, one addition, along with multiple small projects. I will do my best in the office to help subside the backlog of clients waiting. Call me, Cory Eisenhardt, and I will add you to the list. I will make sure I do my part and give my clients the best most accurate pricing I can. With the team moving strong, and our multiple jobs on the books that are growing every day we look forward to what this year has to bring. Bring on spring of 2023.
