The Prescott custom home market continued to be strong in the second quarter of 2023, with demand outpacing supply. The average sales price for a custom home in Prescott was $600,000, up from $550,000 in the same quarter last year. The average build time for a custom home in Prescott is 12-18 months.

Residential Construction Materials Prices

Overall, the market for residential construction materials is expected to remain strong in 2023, despite the recent decline in prices. The demand for residential construction materials is expected to be driven by the continued growth of the housing market. However, there are a number of factors that could push prices up or down in 2023, such as rising interest rates, supply chain disruptions, and rising energy costs.

Lumber

Lumber prices are expected to remain stable in 2023, with some potential for slight increases. The price of lumber has been on a downward trend since the beginning of 2022, due to a number of factors, including increased lumber production, decreased demand, and rising interest rates. However, there are some factors that could push prices up in 2023, such as continued growth in the housing market and rising energy costs.

Steel

Steel prices are expected to be volatile in 2023, with some potential for both increases and decreases. The price of steel has been on a slight upward trend since the beginning of 2022, due to increased demand from the manufacturing and construction industries. However, there are also some factors that could push prices down in 2023, such as rising interest rates and supply chain disruptions.

Paint

Paint prices are expected to remain stable in 2023. The price of paint has been on a slight upward trend since the beginning of 2022, due to rising raw material costs. However, there are no major factors expected to push prices up or down in 2023.

Concrete

Concrete prices are expected to be volatile in 2023, with some potential for both increases and decreases. The price of concrete has been on a slight upward trend since the beginning of 2022, due to increased demand from the residential and commercial construction industries. However, there are also some factors that could push prices down in 2023, such as rising energy costs and supply chain disruptions.

Glass

Glass prices are expected to remain stable in 2023. The price of glass has been on a slight downward trend since the beginning of 2022, due to balanced supply and demand. However, there are no major factors expected to push prices up or down in 2023.

Gypsum

Gypsum prices are expected to remain stable in 2023. The price of gypsum has been on a slight upward trend since the beginning of 2022, due to balanced supply and demand. However, there are no major factors expected to push prices up or down in 2023.

Plastics

Plastic prices are expected to be volatile in 2023, with some potential for both increases and decreases. The price of plastics has been on a slight upward trend since the beginning of 2022, due to increased demand from the manufacturing and construction industries. However, there are also some factors that could push prices down in 2023, such as rising energy costs and supply chain disruptions.

Land is another major cost factor in building. Land prices can vary depending on location and ease of development. However, Prescott still has some great plots available at great prices.

Key Factors

Demand: Demand for custom homes in Prescott remains strong, as buyers are attracted to the area’s high quality of life, outdoor recreation opportunities, and affordable housing.

Supply: The supply of custom homes in Prescott is limited, as there is a shortage of land and labor. This has led to bidding wars and higher prices for custom homes.

Construction Costs: Construction costs in Prescott have remained relatively stable in recent months. However, there are some concerns that rising material costs could lead to higher prices in the future.

Outlook

The Prescott custom home market is expected to remain strong in the coming months. However, rising interest rates and inflation could dampen demand in the second half of the year.

Additional Information

Cost to Build a Custom Home in Prescott: The cost to build a custom home in Prescott ranges from $300-450 per square foot. The exact cost will depend on the size of the home, the finishes, and the location.

Time to Build a Custom Home in Prescott: The time to build a custom home in Prescott is typically 12-18 months. However, the exact build time will depend on the size of the home and the complexity of the design.

Land Availability in Prescott: Land availability in Prescott is limited. There are a few large parcels of land available, but most of the land is already developed.

Labor Availability in Prescott: Labor availability in Prescott is also limited. There is a shortage of skilled tradespeople, which can lead to delays in construction.

Conclusion

The Prescott custom home market is a strong one, with demand outpacing supply. However, there are some concerns that rising interest rates and inflation could dampen demand in the coming months. Buyers and builders should be prepared for these challenges.