A More Measured Market Can Be a Better Planning Market

The first quarter of 2026 brought a more measured pace to Prescott’s custom home market. We are seeing a little bit of a slowdown, and we are hearing the same thing from trades and suppliers. That is not necessarily bad news for serious homeowners.

After several years of tight schedules, long lead times, and overloaded subcontractors, the market is starting to feel more balanced. We are getting caught up. We still have future projects lined up, but the pace is not as frantic as it was during the busiest stretch.

For homeowners who want to build well, that can be a positive shift. A custom home takes thoughtful planning, accurate pricing, and the right trades in the right sequence. A little more room in the schedule can help those pieces come together with fewer surprises.

Construction Costs Still Need Careful Attention

Material pricing has not seen a major drop. That is the honest answer. Some categories have settled down compared to the wild swings of recent years, but we are still dealing with cost pressure across the construction supply chain.

Fuel is one of the big ones. When fuel costs rise, deliveries, trucking, manufacturing, and supplier operations all get more expensive. Those costs often show up as surcharges, and those surcharges get passed down through the project.

Tariffs are also starting to affect some products. We are beginning to see notifications from suppliers, and while every product category is different, it is another reason pricing needs to be watched closely.

Key cost areas we continue to monitor include:

• Lumber, steel, concrete, glass, gypsum, paint, plastics, fuel, freight, and supplier surcharges

Nationally, construction input prices are still elevated. NAHB reported that inputs to new residential construction were up 3.4% year-over-year in February 2026. That lines up with what we are seeing locally: not runaway pricing, but not broad price relief either. (linkedin.com)

Labor Availability Is Improving, But Quality Still Matters

Trade availability feels better than it did during the peak shortage years. We are not hearing “we’re booked six months out” as often, and that helps with scheduling.

That does not mean labor is cheap or that every crew is the right fit. High-performance building depends on details. Air sealing, spray foam insulation, window installation, ventilation, heat pump systems, framing, and mechanical design all have to work together.

That is where experience matters. A home can look finished and still underperform if the envelope and systems are not handled correctly. We would rather plan it right from the beginning than fix comfort, moisture, or efficiency problems later.

Mortgage Rates Are Better, But Buyers Are Still Careful

Mortgage rates remain part of the conversation. Freddie Mac reported the 30-year fixed-rate mortgage at 6.23% as of April 23, 2026, down from 6.81% a year earlier. (Reuters)

That improvement helps, but rates are still high enough that buyers are looking closely at the total picture. That includes land, site work, design, construction costs, long-term utilities, maintenance, comfort, and resale value.

Prescott continues to hold strong as a desirable place to live. Realtor.com shows Prescott’s median listing price around $789,900, with days on market up year-over-year, pointing to a steadier and more deliberate sales pace. (Realtor)

The Advantage Goes to Homeowners Who Plan Clearly

The best opportunity right now is not guessing where the market goes next. It is building with a clear scope, realistic numbers, and a contractor who understands how each decision affects comfort, efficiency, and long-term value.

That has always been our approach at RES Contracting. We believe in transparent proposals, direct communication, and building homes that fit the site, the budget, and the way our clients want to live. Energy efficiency is not an add-on for us. It is part of how the home should perform every day.

Prescott’s market may be more measured in 2026, but the fundamentals are still strong. For homeowners who care about quality, indoor comfort, lower operating costs, and long-term value, this is a good time to start the conversation with a clear plan.

Building Tomorrow’s Homes Today. Call RES Contracting at 928-776-0301 to talk through your custom home plans in Prescott.