The San Antonio construction loan forecast for 2021 is quite uncertain at this time, as a number of factors are in a dynamic state of play. Although interest rates are near historic lows, inflation fears are beginning to materialize into rising daily cost of living prices, and construction materials are also experiencing steep price increases. Plus, demand is also on an upward trajectory, though it is likewise in a state of serious fluctuation, due to the many thousands of individuals and families relocating to the area from out west, the midwest, northwest, and northeast. Read on to learn more about the San Antonio construction loan forecast for this year.
The San Antonio construction loan forecast in 2021 might prove to be one of the most interesting for the history books. At this time, lumber, plywood, and other essential building materials are in very short supply, and with high demand for said materials, prices are doubling, tripling, and even rising more.
Additionally, with literally hundreds to thousands of individuals and families relocating to the Lone Star State, fleeing from other states, housing demand is at a near all-time high. Paired with near-record low-interest rates has caused most housing markets across the state to be seller’s markets. But, because of the rapid price increase in building materials, more people are in the resale market than new construction. Furthermore, builders also deal with the struggles of reopening, following the lockdowns brought on by the global pandemic last year.
Overall, the San Antonio new construction loan climate is in a very unstable state at this time, a trend that is likely to continue for the next several months.