The Austin Texas construction loan forecast for 2021 is very difficult to predict, given all the present circumstances. On the positive side of the ledger are near historic low interest rates and builders ready to return to work after the shutdowns that began in the spring of last year. However, this is tempered, if not negated by, a steep increase in building materials, and the manifestation of inflation, causing the daily cost of living to rise incrementally. Read on to learn more about the Austin Texas construction loan forecast for the rest of this year.
The Austin Texas construction loan forecast in 2021 unfortunately can’t be pinned down to a certain outcome. This is due to the factors listed above, which include the dichotomies of historically low interest rates, eager builders, rising cost of living, and the steep increase of building materials.
The ladder is due to the shutdowns that occurred through the spring and summer of last year, where manufacturing facilities producing lumber, plywood, and other essential materials shut down. Therefore, supply ran very low and has yet to catch up with the demand of last year. This, along with inflationary pressure, which is slowly raising the cost of day-today living, has pushed potential new building customers into the resale market. This has resulted in many counties experiencing sellers market conditions, but has yet to truly benefit new construction. Therefore, it is very difficult to predict, with any degree of accuracy, the state of the new construction loan industry for the next several months, a trend that could continue well into next year, or even further out.