Texas Homebuyers Stunned As Home Price Suddenly Increases By $99,000
By Anna Gallegos
May 21, 2021
A Texas couple trying to buy their first home was absolutely stunned when the price jumped by 25%.
"This blew us away. We cannot be the only people this is happening to, and it's not fair," Nastaccia Byrd told WFAA.
Nastaccia and her husband Robert decided to build a nearly 3,000 square foot, four bedroom house in Waxahachie because it was the best place to get the home they wanted at a price they could afford.
They signed a contract with Lillian Custom Homes to build their house, which cost $369,990 in December. In April, the couple agreed to pay $390,706 because of additional upgrades.
By May, the price of their home rose by $99,294 to $490,000. Now the Byrds have to decide if they want to pay that much.
Lillian told them that the new price was due to the ongoing lumber shortage.
"Certain factors, including but not limited, to COVID-19 pandemic and the Arctic freeze has caused unprecedented changes in the construction industry. Demand for construction materials has increased even as shutdowns and supply chain issues have resulted in severe shortages," the company said in a statement to WFAA.
The price of lumber has gone up 180% since the start of the pandemic. The high demand for housing plus the high cost of building supplies is putting the squeeze on potential homeowners.
A Central Texas family who had their home building contract suddenly canceled said that the home they signed for last year would cost at least $100,000 more today, CBS Austin reported.
“There are just not enough adjectives to explain how crazy this market is right now,” Susan Horton, president of the Austin Board of Realtors, told the station.
As the Byrds decide what their next move is, their lender told them that their house might not be worth what it cost to build it if they agree to the $99,000 surcharge.
"It's a dog-eat-dog world. I mean, we don't want to be forced back into the rat race for a house," Nastaccia said.
Photo: Getty Images