The Dallas construction loan forecast for 2021 is a very difficult dynamic to assess. Given the fluctuation in openings and shutdowns, due to the global pandemic, rising lumber prices, increased cost of living on the horizon, all coupled with near historic interest rates, makes it very difficult to estimate. However, to provide a look into the Dallas construction loan industry for this year.
The Dallas construction loan forecast for 2021 is in a state of disruption, largely because of the state of play with construction materials, in a changing environment that includes many people relocating from other states. This uncertain set of circumstances has many builders attempting to establish a baseline from which they can operate.
For instance, the goal pandemic and subsequent shutdowns that occurred last spring and summer caused the temporary cessation of lumber harvesting and production, which is now causing severe shortages, particularly in lumber. That has caused the price of this essential building material to skyrocket, which is causing builders to include stipulations in their cost estimates.
Additionally, with interest rates near historic lows, many homeowners are choosing to refinance, rather than build. Meanwhile, new construction candidates are entering the resale market due to the increasing prices of building new. Another factor is the threat of inflation, which raises the cost of day-to-day living.
These juxtaposing elements put the construction loan industry in a very uncertain state of play, which could last for the next several months or longer.