5 On Your Side

Wait lists, lotteries: Buyers interested in new construction face new challenges in hot housing market

Anyone trying to buy a new home right now knows there's competition.

Posted Updated

By
Monica Laliberte
, WRAL executive producer/5 on Your Side reporter

Anyone trying to buy a new home right now knows there’s competition.

Some prospective homeowners have even signed onto a waiting list for the chance to make an offer to build.

5 On Your Side checked out a new development in North Raleigh.

It has 27 lots, but only 14 were allowed to be sold because the builder, Robuck Homes, could not keep up with demand. Buyers are willing to pay big for one of the remaining 13 lots, but supply chain delays and rising costs of raw materials mean Robuck had to put a halt to taking contracts.

Robuck Homes General Manager Chip Bishop called it "one of the scariest things we’ve ever done."

"We stopped sales," he said, something he never expected to do.

Bishop said costs are rising on everything. "The roofing, the windows, the siding, the framing, the insulation, the drywall especially — every single part of that home has jumped in price," he said.

"The market is absolutely crazy," said Anita Herring of Durham.

She contacted 5 On Your Side with her home buying shocker with a different builder.

She signed a purchase agreement, put money down, picked out carpet, tile, even the color of the house. Then she got word from the sales agent.

"He can’t sell you the home at that price because the construction costs have gone up," she said she was told.

The builder told Herring he wanted to increase the price by $9,000!

Herring was stunned and pulled out of the deal.

Another issue she and other buyers face is wait lists.

"They (builders) would say, ‘It’s a delay. We can’t sell it right now. But, you know, you can be on our waiting list and we’ll let you know when it becomes available,’" said Herring. "So you’re just adding your names to these different lists hoping you can jump in and be able to purchase your home."

A&G Residential in Fayetteville says some buyers have been on their wait list for more than eight months.

Caruso Homes is doing lotteries for lots in its Cary neighborhood.

In Johnston County, Westan Homes stopped pre-sales, so they can accurately price homes closer to completion.

Bishop says customers eventually buying in Stoneridge Place in Raleigh won’t be able to move in until next year.

He says simply put, demand for homes in the Triangle way out paces supply.

"We usually have about 7,000 to 9,000 (homes) in MLS; now we’re running around 1,500," said Bishop. "It’s something I’ve never seen before."

And there’s no sign of a slow down.

"Price is going through the roof, it really is, and I think we’re a long way from seeing the top," he said. "So if you can get a home, now’s the time to do it."

Buyers need to have their financial situation in order and to add a tough skin and plenty of persistence in checking home availability.

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