Housing Watch: Shortage of building materials causing spike in home prices

FRESNO, Calif. (KFSN) -- Action News is Taking Action as the Central Valley housing market continues to be red-hot despite just released numbers that show a dip in new home sales nationwide.

House hunters are willing to pay over the asking price while a short supply of building materials has caused the cost of new homes to spike to never before seen levels

"The waiting list for home developments is so deep and so heavy," said Ryan Pottoroff with Wilson Homes.

Pottoroff credits a combination of government stimulus money along with low-interest rates and the demand for additional space as more people work from home has buyers looking to upgrade their living situation.

But because the demand for new housing has reached peak levels and lumber remains in short supply, builders such as Wilson are having to hand over the keys to buyers without everything completely finished.

"People will have to move into homes without fences. They'll still get them. They're going to have to close escrow without them just because there's a shortage and they can't get them installed," said Pottoroff.

Jeff Perritte, owner of White Pine Lumber in Fresno, says he's starting to see a decline in lumber prices as more mills are ramping up production, which should help frustrated buyers and could ease home prices

"I believe there will continue to be demand, the pace will slow down to a more manageable pace and supply issues should be eased up due to the slower pace. So I think we'll be back to prior to the pandemic as far as being able to take care of customers," said Perritte.

Experts tell Action News they don't expect the local housing boom to slow down anytime soon, as pent-up demand for new housing is expected to carry the local market through the Summer and well beyond.