Managing Your Construction Loans and Budget Amidst Surging Material Prices
Looking back to last year, no one could have predicted the spectacular rise in construction and material costs. According to the National Association of Homebuilders, inflated lumber prices have caused the “average price of a new single-family home to increase by nearly $36,000…and the average price of a new multi-family home…by nearly $13,000,” – and that’s just since March 2020.
But lumber isn’t the only story – a recent report from the US Chamber of Commerce showed that 71% of surveyed contractors are facing at least one material shortage. From studs to appliances, construction materials across the board are facing rising prices or shortages, driving up construction costs and slowing down projects.
What’s Causing the Price Increase?
There are several factors influencing these rising numbers. A perfect storm of low interest rates, a migration out of big cities post-pandemic, more people buying and building new houses, and pandemic DIY home improvement projects has converged on top of ongoing supply chain issues.
From contractors to lenders, parties within the construction sector are taking a hard look at their budgets and bottom lines.
3 Reasons Why the Right Construction Loan Disbursement Software is a Smart Investment
With all these unknowns, it is critical that your construction loan software can keep up and that your project numbers are accurate. AccuDraw 7 is the most customizable construction loan tracking software on the market, giving you and your team the tools to get the job done quickly and accurately, even with the many uncertainties surrounding the availability and supply of building materials.
Here are just a few advantages of a good construction management loan software:
- Improved efficiency. For example, AccuDraw makes it easy to import your contractor’s budgets, no matter what the format or source is. This saves you time and headaches.
- Easier to spot variances. Whether it’s human error or the rising cost of materials, the right construction loan software makes it easy to know at-a-glance the status of every project so that you can feel confident to make hard decisions.
- Secure data and shared project information at your fingertips. Mitigate two of the biggest risks of using spreadsheets and make it easy to keep track of important lending data and customer information.
Ready to Try AccuDraw?
While it’s difficult to say when the current shortages may begin to ease, AccuDraw’s leading construction loan management software lets you easily and accurately manage and maximize the opportunities within your control.