William Ryan Homes is Managing Challenges for Buyers Getting into Red-Hot Housing Market

A worldwide supply chain disruption and rising inflation are not stopping homebuyers from getting into one of the hottest markets in recent times.

As one example of the challenges in today’s market, lumber costs over the past year added more than $18,600 to the average price of a new single-family home, reports the National Association of Home Builders. And aluminum has risen more than 56% in the past year, reaching a near-record high of $3,300 per ton, reports Trading Economics. 

But the challenges that homebuilders and homebuyers face go beyond the increased costs of building supplies. There are also delays in getting everything from trusses or cabinets to appliances and garage doors.

Still, home sales are expected to grow 6.6% nationwide in 2022, which is a 16-year high, reports Realtor.com. And with more than 45 million millennials ages 26 to 35 fueling the first-time home buying market, the demand for housing is expected to continue.

With this “new normal,” it’s important that homebuilders be smart and flexible to deal with the market’s twists and turns. William Ryan Homes is taking this approach, and is successfully navigating this challenging time for its buyers.

“Homebuyers who are getting into one of the hottest markets in recent times face plenty of challenges, but we find them manageable,” said Jeff Thorson, Tampa Division President of William Ryan Homes.

William Ryan Homes guarantees contract prices, moving away from industry practices of "escalation causes"

One of the biggest challenges for homebuyers are “escalation clauses,” which allow the homebuilder to increase the contract price of a new home based on the builder’s increased costs for materials. The result for many homebuyers is finding that when their closing occurs, the price of their home has increased by as much as tens of thousands of dollars. Half of the nation’s homebuilders are adding price escalation clauses to cope with rising costs, according to the National Association of Home Builders.

But homebuilder William Ryan Homes has chosen a different path, sticking to the contract price, regardless of the continued cost increases in materials. Once homebuyers sign the contract, the price is set and guaranteed – there are no escalation clauses. This is one of many ways William Ryan Homes Tampa is addressing the challenges that homebuyers face in today’s market.

Homebuilder William Ryan Homes believes communication with homebuyers is key

William Ryan Homes is transparent throughout the building process regarding construction delays, some of which are unavoidable and unexpected.

The company’s top three rules with homebuyers are communicate, communicate and communicate. “We’re managing construction timelines and customer expectations at the same time,” said Thorson.

About William Ryan Homes

William Ryan Homes is meeting the escalating demand for new homes in five cities: Tampa, Phoenix, and Chicago as well as Milwaukee and Madison in Wisconsin. We provide customers with a technology-enhanced, energy efficient and healthy home that fits your budget and your family. 

To schedule a tour of one of our model homes in our Tampa division, call Maxine at 813-696-6986 or send her an email mstull@wmryan.com. She can quickly schedule your visit and answer other questions you may have about William Ryan Homes.